Sterne Agee Maintains a 'Neutral' on Dell (DELL); Dividend Policy A Nice Gesture, But Not Enough

June 13, 2012 10:36 AM EDT Send to a Friend
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Sterne Agee maintains a 'Neutral' on Dell (NASDAQ: DELL).

Analyst, Shaw Wu, said, "While we view this as a positive step in creating more shareholder value, we question if this is the most effective use of cash given the company's far from complete effort in transforming itself beyond commodity industry standard offerings."

"We remain concerned that DELL is in a tough fundamental position sandwiched between low-cost players (Lenovo and Acer) and Apple (Nasdaq: AAPL) encroaching more in its core PC business. Despite efforts to grow beyond a PC company with multiple acquisitions over the past few years, we estimate 65%-70% of its business is still tied to PCs. We still believe DELL needs to take bolder, more aggressive steps to reinvent itself."

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 $11.97 yesterday.


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