ISS Recommendation Viewed as Step in Right Direction for Dell (DELL)

This morning proxy voting firm ISS recommended shareholders vote in favor of Michael Dell/Silver Lake's offer for Dell (NASDAQ: DELL). In the view of analyst Maynard Um of Wells Fargo, the news helps alleviate investors fears and is a step in the right direction.

"The ISS opinion is consistent with our view that a private Dell would be able to make strategic decisions without public scrutiny (for example, accelerating spend if needed). We believe this is a step in the right direction and mitigates some risk of shareholders voting against the current offer priced at $13.65 (shareholder vote is scheduled for July 18). We continue to believe that absent the take-private offer, Dell shares would likely be under significant pressure given the declines in the PC market and recent results," said Um.

Wells Fargo has a Market Perform rating on Dell with a price target of $13-$15.

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 $13.03 yesterday.

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