UPDATE: Citigroup Initiates Dell at Sell on PC Weakness

Citigroup initiated coverage on Dell

with a Sell rating and a $8.50 price target. Citigroup noted, "Key [reasons] For our Sell Rating: 1) We believe 2013 & 2014 consensus EPS estimates are too high and we are modeling declines in EPS (consensus expects 2014 EPS to grow) and our estimates are 15% below consensus. 2) Dell's future hardware (PC hardware is total 54% of Dell's total company sales) growth is highly tied to emerging market PC growth which is below corporate average profitability and likely to see more pricing by competitors. 3) BYOD to the enterprise for PCs (following handsets) to threaten Dell who has 63% of its PC sales to tied enterprises." Dell closed at $9.66 on Monday.