Deutsche Bank Reiterates a 'Buy' on Dell (DELL); Acquisition with Benefits
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Price: $13.41 -0.52%
Rating Summary:
9 Buy, 21 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 19 | New: 22
Rating Summary:
9 Buy, 21 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 19 | New: 22
Trade DELL Now!
Deutsche Bank reiterates a 'Buy' on Dell (NASDAQ: DELL) price target of $17.00.
Deutsche analyst said, "Our preliminary analysis suggests the deal will be $0.04-0.07 accretive to CY13 EPS on a cash basis (DB at CY13 EPS of $2.00). Key assumptions of the analysis include: $2.4B transaction value, base line Quest revs of $857M in 2011, rev growth of 5-10%, CY13 operating margins ranging from 13-15%, synergies of $25-50M, tax rate of 20% and post tax financing cost of 1.6%. This analysis suggests the ROI on the deal is ~5-7% in CY13. In aggregate, it appears Dell has sourced an asset at a reasonable value (~2.5x revs) with attractive margin & growth characteristics."
The firm maintains FY13 revenue/EPS at $59.5B/$1.85 and FY14 at $60.4B/$2.00.
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 $12.51 yesterday, with a 52 week range of $11.68-$18.36.
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Deutsche analyst said, "Our preliminary analysis suggests the deal will be $0.04-0.07 accretive to CY13 EPS on a cash basis (DB at CY13 EPS of $2.00). Key assumptions of the analysis include: $2.4B transaction value, base line Quest revs of $857M in 2011, rev growth of 5-10%, CY13 operating margins ranging from 13-15%, synergies of $25-50M, tax rate of 20% and post tax financing cost of 1.6%. This analysis suggests the ROI on the deal is ~5-7% in CY13. In aggregate, it appears Dell has sourced an asset at a reasonable value (~2.5x revs) with attractive margin & growth characteristics."
The firm maintains FY13 revenue/EPS at $59.5B/$1.85 and FY14 at $60.4B/$2.00.
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 $12.51 yesterday, with a 52 week range of $11.68-$18.36.
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