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Deutsche Bank Reiterates Buy, $17 PT on Dell on Dividend Initiation

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Deutsche Bank reiterates its Buy rating and $17 PT on Dell (NASDAQ: DELL) as the company focuses on returning cash to shareholders.

Deutsche Bank says, "At its Analyst Day, Dell outlined its LT strategy of capturing greater share of IT profit pools by driving mix towards higher margin end-to-end solutions (SW/networking/Services etc). Dell also initiated a dividend ($0.32 annualized or 2.7% yield) signaling an increased focus on returning cash to shareholders which should be well received by investors. Despite NT challenges in the PC business, we believe Dell is well positioned to benefit from multi-year corporate upgrades & favorable mix towards servers, SW and services. At current levels (4x PE ex cash or 3x EV/FCF) DELL remains attractive for LT investors; Buy."

DELL closed at $11.97 on Wednesday.

Latest Ratings for DELL

DateFirmActionFromTo
May 2013Morgan StanleyReinstatesEqual-weight
Mar 2013Topeka CapitalMaintainsBuy
Feb 2013BMO CapitalMaintainsMarket Perform

View More Analyst Ratings for DELL
View the Latest Analyst Ratings

Posted-In: Deutsche BankAnalyst Color News Dividends Price Target Reiteration Intraday Update Analyst Ratings

 

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