Needham & Company Maintains a 'Hold' on Dell (DELL); Reports F2Q Results, Bursts Street Bubble On Topline Growth & Leverage

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

Needham analyst says, "Wall Street’s latest honeymoon with Dell ended last night with both sides asking what went wrong. We believe that Dell is fundamentally a different company than it was 10, 5 or even 3 years ago. Today, Dell is focused on distancing itself from lower margin businesses (including consumer) while investing in the foundation necessary to see enterprise/data center growth. Despite a solid quarter, unfortunately, many street models ran wild with visions of dramatic operating leverage and topline upside. The downdraft in the stock is the inevitable outcome of the breakup/correcting of models. While at 5x F12 EPS (ex. cash) the stock is a tempting value, we believe negative data points around public and consumer spending will likely keep the stock range-bound until early Fall, when we will revisit."

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

• Coherent (COHR) PT Raised to $420 at Needham
• York Space Systems (YSS) PT Lowered to $18 at Needham
• Dell Technologies (DELL), HP Inc. (HPQ) Strength May be Tied to Lenovo Results