Standpoint Research Downgrades Dell (DELL) to Hold; Time To Make An Exit

Standpoint Research downgraded Dell (NASDAQ: DELL) from Buy to Hold.

Analyst, Ronnie Moas, said, "Dell shares hit a 52-week high this morning, are nearing a four-year high and have crossed our $18 price target. The shares are up 25% since our May 2010 recommendation. Dell reports next week and good news/guidance may already be priced in with the stock outperforming the S&P 500 by 2000 bps year-to-date. The shares are only trading at 9X with a nice cash position but with no EPS or revenue growth, this may be near fair value (although the market may decide to attach a 10X or 11X multiple here). Relative Strength here is nearing 90 and that is usually when I look to exit a position (even though some well-known hedge funds are now buying the shares). Unfortunately we couldn’t register a significant gain versus the S&P with this trade. The 25% gain in DELL tracked the S&P and that is what we expect going forward given the recent outperformance."

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 $18.04 yesterday.

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