UPDATE: FBN Securities Reiterates Sector Perform Rating, Raises PT on Dell on Modest FQ4 Beat
In a report published Wednesday, FBN Securities reiterated its Sector Perform rating on Dell (NASDAQ: DELL), and raised its price target to $14.00.
FBN Securities noted, “We retain our Sector Perform rating on DELL and raise our PT to $14 to reflect the likelihood of a the company being taken private. Dell reported FQ4 revenue of $14.3B (-11% Y/Y and ahead of consensus of $14.1B) and NG EPS of $.40 (vs. consensus of $.39). NG GM% of 22.8% was ahead of our 22.1% estimate, but GM benefited by 180bp due to vendor settlements, so normalized GM was 21.0%, below our estimate. After ceding share for many quarters to the Asian PC companies (Lenovo, Asus, etc.), DELL decided to become more price aggressive in PCs.”
Dell closed on Tuesday at $13.81.
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Tags: FBN Securities