Stifel Nicolaus Maintains Buy Rating On DELL (DELL)
Stifel Nicolaus released a report today in which they maintain their Buy rating on Dell (NASDAQ: DELL) shares and their $18 price target. This target is based on a 13X multiple of 2011 EPS estimates of $1.34 and 6X EBITDA. DELL also has around $4 per share in cash on their balance sheet.
The report does highlight some concerns, however. Revenues are down across the board at the company, and revenue from the acquisition of Perot Systems came in less than expected. The analysts wrote that "we believe there could be questions on why the Perot revenue contribution declined so much relative to prior standalone revenue." Stifel is looking for DELL's revenues to increase 12% in 2011 to $59.4 billion. During today's trading session, DELL shares have lost 1.58% to $14.32.
