Needham & Company Maintains a 'Hold' on Dell (DELL); Solid F1Q, Revenue Growth Reiterated, But Likely Reflected

Needham & Company maintains a 'Hold' on Dell (NASDAQ: DELL).

Needham analyst says, "While our downgrade to Hold may have been premature, we are maintaining that stance as we believe that the valuation of Dell (plus the after hours rise) incorporates the improvement in margin profile for the company. We believe that to warrant further appreciation in the stock, the street would need to: 1) suspend its negative view on tablets, 2) assume a near-term recovery in the consumer PC market, and 3) believe Dell will be able to maintain or expand margins even in the pending less favorable component environment (all of which we see as unlikely at this time)." (Needham raises FY11 EPS estimate from $1.63 to $1.88 and FY12 from $1.66 to $1.95)

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

Shares of Dell closed at $15.90 yesterday.

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