UPDATE: Jefferies Raises PT to $13.65 on Dell Post LBO Bid
Jefferies maintained Dell (NASDAQ: DELL) with a Hold rating and raised the price target from $13.00 to $13.65.
Jefferies noted, "Revising our LBO analysis to account for the details found in the M&A agreement, we believe that the bid could be raised to $15 to satisfy agitated shareholders. While many shareholders would obviously like a higher bid, we see competing offers as unlikely. We estimate $15 would yield a 20%-23% IRR (see Exhibit 1) and believe private equity would be unlikely to accept a lower rate."
Dell closed at $13.70 on Monday.
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