Standpoint Research Upgrades Dell (DELL) to Buy; Sitting on Piles of Cash

Standpoint Research upgraded Dell (NASDAQ: DELL) from Hold to Buy with a price target of $21.00.

Analyst, Ronnie, Moas, said, "On February 15 we downgraded DELL from Buy to Hold, not because it was over-valued or fairly-valued in itself, but because it had run up in advance of the February 21 Q4 earnings announcement, hit our price target for 2012 and a three-year high. I was not comfortable holding the open recommendation through that announcement and downgraded a few days before the news. DELL did indeed disappoint and has under-performed the S&P-500 by nearly 1000 bps since our downgrade. Lost in all of the disappointing Q4 news was the fact that earnings estimates for next year have actually gone from $2.04 to $2.18 in the last month. So DELL, at $17.35, is now trading < 8X earnings estimates for next year, EV/EBITDA < 5X, P/S at 0.5X and P/CF at 6X. DELL market capitalization is $31 bln and they are sitting on $14 bln in cash (that is > $8 per share in cash)."

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 $17.35 yesterday.

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