John, with the current Q soon ending, and earning release a month away, the analysts weigh in.....
Dell Unlikely To Yield Significant Near-Term Upside
David Ng, 10.05.05, 11:38 AM ET
Goldman Sachs maintained an "in-line" rating on Dell (nasdaq: DELL - news - people ), saying the computer hardware company will take some time to fix itself, but is still fundamentally sound.
"Dell shares. . .will probably not yield sufficient near-term upside to make the stock interesting at these levels," Goldman said.
The research firm said Dell's biggest miscue has been chasing a higher growth rate for too long. "Street estimates for the October quarter and for fiscal 2007, at 14.5% in both cases, seem to aptly capture Dell's new growth prospects," the research firm said.
Goldman said Dell's growth could tick briefly higher in the January 2006 quarter as the impact of declining federal government demand lessens.
"There are a number of places for Dell to cut operating expenditure," Goldman said, adding that this will buy the company more flexibility and stable margins.
The research firm said Dell's changing printer strategy could cause pain for Lexmark International (nyse: LXK - news - people ). "Dell's strategy in printers has changed sufficiently enough such that the center of gravity no longer favors Lexmark, at least under the current arrangements," Goldman said.
Dell is making an abrupt shift away from single-function inkjets, and towards all-in-one printers and, especially, color laser printers, according to the research firm.
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Dell "overweight," target price reduced - update
Wednesday, October 05, 2005 1:40:02 PM ET
Prudential Financial
NEW YORK, October 5 (newratings.com) - Analyst Steven M Fortuna of Prudential Financial maintains his "overweight" rating on Dell Inc (DELL.NAS). The target price has been reduced from $47 to $39.
In a research note published this morning, the analyst mentions that Dell's ongoing focus on improving consumer pricing is likely to adversely affect the company's revenue growth over the forthcoming few quarters. The analyst views the consensus estimate of a 14%-15% revenue CAGR for Dell as overly optimistic. Prudential Financial adds, however, that the company's long-term revenue growth prospects remain robust. |
