UPDATE: JP Morgan Reiterates Overweight, $21 PT on Dell

JP Morgan reiterates its Overweight rating and $21 target price on Dell

as near-term pressure creates opportunity and mix shift continues. JP Morgan notes, "We upgraded Dell to Overweight from Underweight on Feb. 2. Our call was that over the next 3-6 months a positive inflection point in Dell's revenue growth profile could manifest. Key drivers are 1) potential peaking in revenue pruning and 2) increasing contribution from non-PC sources. Last night's results and guide did not change our view. Dell commented that the pruning will continue, but we expect the pace to slow. Dell also stated that OpEx investments could ease, which we think sets the stage for incremental operating leverage." DELL closed at $18.21 a share on Tuesday.