Jefferies Maintains a 'Hold' on Dell (DELL); Revenues/EPS Guidance Solid but GM Pressured, EPS Light

Jefferies maintains a 'Hold' on Dell (NASDAQ: DELL) price target raised from $15 to $17.

Jefferies analyst says, "Dell reported results that met consensus revenues but slightly missed consensus EPS expectations due to weak GM (21.7% vs. St 22.6%, JEF 22.0%). As we expected, FY13 (Jan) EPS guidance was optimistic. We continue to see secular PC margin headwinds offsetting Dell's server/storage margin tailwinds, we expect Dell to make a software acquisition."

Jefferies raises FY13 EPS estimate from $1.98 to $2.15, but cuts revenues from $63,851.0Mln to $62,625.0 Mln.

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 $18.21 yesterday.

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