Auriga Maintains a 'Buy' on Dell (DELL); Margin Expansion Story Intact, but Revenue Outlook Likely a Concern for Investors

Auriga maintains a 'Buy' on Dell (NASDAQ: DELL) price target of $25.00.

Auriga analyst says, "Consistent with our investment thesis, Dell reported upside to EPS despite soft revenue in its F2Q12. The company is also effectively raising its full year EPS guidance despite a macro related revenue guidance reduction. 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."

"Our F12 (Jan) pro-forma EPS estimate increases to $2.00 from $1.97, despite a reduction in our revenue assumption, to $63.0Bn from $64.1Bn. Our recently increased pro-forma EPS estimates for both F3Q12 and F4Q12 remain unchanged."

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

Shares of Dell closed at $15.80 yesterday.

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Dell (DELL) PT Raised to $545 at Wells Fargo
• New data shows storage is strengthening while PC demand deteriorates
• BofA Securities Resumes American Eagle Outfitters (AEO) at Underperform