Goldman Sachs Raises Dell (DELL) Two Notches to Buy; Sees Positive Risk/Reward in FY13

December 3, 2012 6:35 AM EST
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Price: $13.86 --0%

Rating Summary:
    9 Buy, 21 Hold, 3 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 30 | Down: 30 | New: 23
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Dell (Nasdaq: DELL) is trading strong in pre-market action Monday following a late upgrade by Goldman Sachs last Friday night.

Goldman raised its rating on Dell by two-notches, from Sell to Buy, boosting its price target from $9 up to $13. The firm said Dell's net cash provides support to downside, producing an opportunity for a leveraged buyout (LBO) or recapitalization under the right conditions.

Goldman notes, however, that an LBO would be "challenging" at this point.

The firm sees bad news in the PC market having been baked with, with the secular bear case now the Street consensus. Overall risk/reward has turned positive on the company.

Sentiment could take a turn for the positive on Dell in 2013, Goldman noted.

Shares are up over 4.5 percent in early trading.

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 $9.64 yesterday.

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