Needham & Company Maintains a 'Hold' on Dell (DELL); Not Sure If Quest Acquisition Will Move The Needle

July 3, 2012 7:40 AM EDT
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Price: $13.86 --0%

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

Analst, Richard Kugele, said, "As has been widely speculated for weeks, Dell continued its buying trend yesterday with the acquisition of Quest for $28/share after battling Insight Venture Mgmt’s previous deal with the company. Few details were provided on ultimate accretion, but as the deal will be funded from cash (or cash raised through debt) we believe it should be accretive in F14 at least. Moving the needle, however, remains challenging with Quest at only an $857M annual revenue run-rate (no change to estimates until closing in F3Q). With global macro/PC issues lingering, we maintain our Hold on Dell despite the seemingly attractive valuation."

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 $12.39 yesterday.

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