UPDATE: Morgan Stanley Resumes Coverage on Dell with Equal-Weight Rating

In a report published Monday, Morgan Stanley resumed coverage on Dell

with an Equal-Weight rating. Morgan Stanley noted, “Macro uncertainty continues to delay non-critical IT spending, while PCs also face aggressive price competition. Dell is investing in enterprise solutions to shift away from PCs and needs to continue to do so. The stock already discounts the weak demand near term so we resume coverage at EW..While Dell remains structurally disadvantaged with 65% revenue exposure to PCs and servers, the recent acceleration in acquisitions increases the likelihood that Dell can grow revenue and improve margins to in-line with its peer group over the long term.” Dell closed on Friday at $9.85.