NOV. 2 9:10 A.M. ET Dell Inc. received its second upgrade in a week Thursday, as a Goldman Sachs analyst boosted her rating on the computer maker, impressed by more disciplined pricing and more attention to product mix.
"We are now viewing Dell as a potential turnaround candidate and have raised our price target to $26.50 from $21, 10.3% higher than yesterday's close," analyst Laura Conigliaro wrote in a note to investors. She upgraded the company's rating to "Neutral" from "Sell."
Conigliaro said the Round Rock, Texas-based Dell, which also makes servers, printers and plasma TVs, may achieve consensus estimates or better for the quarter, even if revenue is lower than expected.
"Other non-fundamental issues that could also affect the stock include continuing speculation about possible management changes, resolution of the SEC informal investigation and, related to that, Dell's ability to get back into the market buying back shares," she wrote.
The company is scheduled to report third-quarter results on Nov. 16 after the market closes. Analysts predict per share earnings of 24 cents on $14.44 billion in revenue.
On Tuesday, UBS analyst Benjamin Reitzes lifted his rating on the stock to "Neutral" from "Reduce" and said the company may be enjoying higher average selling prices, and its higher-margin servers and storage business seems to be doing well.
"However, we still have a negative view toward Dell's dwindling business model advantage versus Hewlett-Packard Co., which is evident in weak personal computer sales," Reitzes wrote in a note to clients.
Reitzes lifted his price target on the stock to $25 from $20. |
