S&P Downgrades Dell (DELL) From Hold to Sell

S&P downgraded Dell, (NASDAQ: DELL) to sell from hold, in the Mar.3, edition of The Outlook. However, the overwhelming analyst consensus is Hold. The stock is trading at $13.69, up around 1% for the day. Year to date Dell is down around 5%. The stock was up 40% last year after losing a cumulative 105% over the years from 2005 thru 2009.

“Dell posted January-quarter operating earnings per share of $0.28 (excluding restructuring and other charges), which reflecting the acquisition of Perot Systems and growth in all segments. But margins were pressured by competitive pricing, product mix,and component cost issues. We see strengthening computer markets boosting sales, but expect modest progress on margins."

"We are lowering our fiscal 2011 (Jan.) operating EPS estimate to $1.20 from $1.25 and cutting our target price to $13 from $16.”