Dell: Stifel Launches With Buy Rating
blogs.barrons.com
January 5, 2010, 9:16 AM ET
By Eric Savitz
Stifel Nicolaus analyst Aaron Rakers this morning launches coverage of Dell (DELL) with a Buy rating and $18 price target. The stock closed yesterday at $14.54.
“While we consider Dell to very much reflect a prove-it story as we look into what we view to be a positive mid/second half 2010 upgrade cycle, we believe negative Street sentiment has been adequately reflecting key concerns,” he writes. (Those concerns include competitive questions in the enterprise data center, integration risks with the Perot deal, share losses in PCs, trouble in the consumer sector, loss of EMC reseller business, and other things.) “We consider Dell shares to be a compelling risk/reward for patient long-term, large-cap value investors.”
Potential drivers for the stock, he says, include synergies from the Perot deal, the coming (everyone hopes) corporate PC upgrade cycle and improving margins. |
