Deutsche Bank Reiterates a 'Buy' on Dell (DELL); Acquisition with Benefits
Tweet Send to a FriendGet Alerts DELL Hot Sheet
Price: $13.48 +0.52%
Rating Summary:
9 Buy, 21 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 12 | New: 30
Rating Summary:
9 Buy, 21 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 12 | New: 30
Trade DELL Now!
Deutsche Bank reiterates a 'Buy' on Dell (NASDAQ: DELL) price target of $17.00.
Deutsche analyst said, "Our preliminary analysis suggests the deal will be $0.04-0.07 accretive to CY13 EPS on a cash basis (DB at CY13 EPS of $2.00). Key assumptions of the analysis include: $2.4B transaction value, base line Quest revs of $857M in 2011, rev growth of 5-10%, CY13 operating margins ranging from 13-15%, synergies of $25-50M, tax rate of 20% and post tax financing cost of 1.6%. This analysis suggests the ROI on the deal is ~5-7% in CY13. In aggregate, it appears Dell has sourced an asset at a reasonable value (~2.5x revs) with attractive margin & growth characteristics."
The firm maintains FY13 revenue/EPS at $59.5B/$1.85 and FY14 at $60.4B/$2.00.
For an analyst ratings summary and ratings history on Dell click here. For more ratings news on Dell click here.
Shares of Dell closed at $12.51 yesterday, with a 52 week range of $11.68-$18.36.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
Deutsche analyst said, "Our preliminary analysis suggests the deal will be $0.04-0.07 accretive to CY13 EPS on a cash basis (DB at CY13 EPS of $2.00). Key assumptions of the analysis include: $2.4B transaction value, base line Quest revs of $857M in 2011, rev growth of 5-10%, CY13 operating margins ranging from 13-15%, synergies of $25-50M, tax rate of 20% and post tax financing cost of 1.6%. This analysis suggests the ROI on the deal is ~5-7% in CY13. In aggregate, it appears Dell has sourced an asset at a reasonable value (~2.5x revs) with attractive margin & growth characteristics."
The firm maintains FY13 revenue/EPS at $59.5B/$1.85 and FY14 at $60.4B/$2.00.
For an analyst ratings summary and ratings history on Dell click here. For more ratings news on Dell click here.
Shares of Dell closed at $12.51 yesterday, with a 52 week range of $11.68-$18.36.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
You May Also Be Interested In
- Icahn Proposes Dell (DELL) Start Offer for 1.1B Shares at $14/Share
- Wells Fargo Starts Quintiles (Q) at Outperform
- Terex (TEX) Suffers from Weakness in Europe; Read-Through For Manitowoc (MTW)
Create E-mail Alert Related Categories
Analyst Comments, Analyst EPS View, Mergers and AcquisitionsRelated Entities
Deutsche Bank
Login with Facebook
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
