Collins Stewart Maintains a 'Neutral' on Dell (DELL); Weak PC Rev Offset by Margins

Collins Stewart maintains a 'Neutral' on Dell (NASDAQ: DELL), PT lowered by $1 to $15.

Collins analyst says, "We are lowering our FY12 (Jan) revenue but maintaining our EPS est for Dell as we are lowering our 2011 PC unit growth outlook to 2.3% from mid-to high-single-digit growth. Most of Dell’s revenue (78%) is enterprise focused, and the enterprise refresh cycle is helping support PC growth, but only at modest, not exceptional levels. On the consumer side, demand has been weak for almost a year. In addition, tablets – most notably the Apple iPad – are certainly cannibalizing and slowing PC unit growth. The impact is mostly on the NetBook/low-end category, but beyond the consumer area, at almost any meeting we attend, a material number of folks are using iPads...We reduce our FY12/FY13 Desktop rev estimates by $400M & $305M, respectively, to 2% revenue growth in FY12 & 5% growth in FY13, & lower our Mobility rev ests by ~$1.0B in FY12 & $1.3B in FY13 to 2% & 4% growth in FY12/FY13, respectively."

For more ratings news on Dell click here and for the rating history of Dell click here.

Shares of Dell closed at $14.71 yesterday.

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Lithia Motors (LAD) PT Lowered to $310 at Craig-Hallum
• Atlas Copco AB (ATCOA:SS) (ATLKY) PT Raised to SEK150 at RBC Capital
• Secureworks Leads with Advanced Integration of Threat Detection and Vulnerability Risk for Expedited Threat Resolution