Ahead of the Bell: Dell
Associated Press 03.26.07, 8:00 AM ET
Goldman Sachs on Monday added Dell Inc. to its Americas Buy List of preferred stocks, as an analyst said the first benefits of the computer maker's turnaround will come later this year.
Goldman Sachs (nyse: GS - news - people ) analyst Laura Conigliaro upgraded the Round Rock, Texas-based company's shares to "Buy" from "Neutral." With Dell (nasdaq: DELL - news - people ) trying to turn itself around amid bloating costs and slowing sales growth, Conigliaro said the stock will reflect the benefits beginning October 2007.
Dell, which has delayed filing audited financial results because of an ongoing Securities and Exchange Commission investigation into possible accounting irregularities, may update its financial statements as early as April, Conigliaro said. Then, Dell can start buying back its stock and giving investors more information about the company's direction.
After that, Dell can begin cutting expenses and improving sales, she said.
Conigliaro's $28 price target is 22.6 percent higher than the stock's close Friday at $22.83.
Dell shares rose 77 cents, or 3.4 percent, to $23.60 in premarket |
