Goldman Sachs Maintains a 'Sell' on Dell (DELL); Hitting The Reset Button

August 22, 2012 7:11 AM EDT
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Price: $13.86 --0%

Rating Summary:
    9 Buy, 21 Hold, 3 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 14 | Down: 24 | New: 12
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Goldman Sachs maintains a 'Sell' on Dell (NASDAQ: DELL) price target of $11.00.

Analyst, Bill Shope, said, "Dell reported a revenue miss and in-line EPS for the July quarter, but its full-year outlook fell short of our already below-consensus estimate...Excluding the one-time gross margin benefit and a lower-than-expected tax rate, EPS would have been approximately in line with consensus. The company also issued disappointing guidance for 3QFY2013 and FY2013, both of which came in lower than our already below-consensus estimates."

"We believe the deterioration in the stock this year and the likely sell off today, coupled with the reset of guidance to more realistic levels, suggests we are closer to a bottom. But we believe the stock could remain under pressure until the near-term risk of incremental revenue and earnings pressure eases."

FY13 EPS estimate lowered from $1.78 to $1.74, FY14 from $1.84 to $1.77 and FY15 from $1.93 to $1.84.

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 $12.34 yesterday.

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