UPDATE: Credit Suisse Reiterates Underperform Rating, Lowers PT on Dell
In a report published Friday, Credit Suisse Group reiterated its Underperform rating on Dell (NASDAQ: DELL), but lowered its price target from $11.00 to $9.00.
Credit Suisse noted, “Lowering estimates and target price. Following Dell's F3Q13 earnings report, we lower EPS estimates by 4%/3% to $1.70/$1.60 for FY13/14. As highlighted by F3Q13 results, while some issues are cyclical, we also believe certain challenges in the client business are deep-seated. Dell aims to increasingly move toward the enterprise, but this transition may be slower than many expect and margins have more risk to the downside. As a result, we maintain our Underperform rating and lower our target price to $9 (from $11).”
Dell closed on Thursday at $9.58.
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