Auriga Maintains a 'Buy' on Dell (DELL); Expect Positive Analyst Day Next Week
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Price: $120.63 --0%
Rating Summary:
22 Buy, 14 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 8 | New: 13
Rating Summary:
22 Buy, 14 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 8 | New: 13
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Auriga maintains a 'Buy' on Dell (NASDAQ: DELL), PT $25.
Auriga analyst says, "Dell will host its annual analyst day next Tuesday and Wednesday in Austin, TX, and while we don't expect the event to serve as a major catalyst, management commentary could provide comfort to fence-sitting investors who remain skeptical of the Dell turnaround story. We continue to believe Dell can grow its top-line roughly in-line with overall IT spending as it transforms itself into a full-service enterprise vendor over the next several years. The real allure to investors is likely to be the slow and steady margin expansion story that accompanies that transformation. While there may be bumps in the road along the way, attractive free cash flow, returns on capital and valuation suggest to us that shares remain a good buy for value-oriented investors."
"We are more comfortable that Dell will continue to get a modest benefit from mix, as well as continued contribution from lower component costs, thus we are boosting our F2Q12 (July) pro-forma EPS estimate to $0.46 from $0.42 (Street at $0.48)."
For more ratings news on Dell click here and for the rating history of Dell click here.
Shares of Dell closed at $16.21 yesterday.
Auriga analyst says, "Dell will host its annual analyst day next Tuesday and Wednesday in Austin, TX, and while we don't expect the event to serve as a major catalyst, management commentary could provide comfort to fence-sitting investors who remain skeptical of the Dell turnaround story. We continue to believe Dell can grow its top-line roughly in-line with overall IT spending as it transforms itself into a full-service enterprise vendor over the next several years. The real allure to investors is likely to be the slow and steady margin expansion story that accompanies that transformation. While there may be bumps in the road along the way, attractive free cash flow, returns on capital and valuation suggest to us that shares remain a good buy for value-oriented investors."
"We are more comfortable that Dell will continue to get a modest benefit from mix, as well as continued contribution from lower component costs, thus we are boosting our F2Q12 (July) pro-forma EPS estimate to $0.46 from $0.42 (Street at $0.48)."
For more ratings news on Dell click here and for the rating history of Dell click here.
Shares of Dell closed at $16.21 yesterday.
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