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

Deutsche Bank reiterates its Buy rating and $17 PT on Dell 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.