Brean Murray Carret Reiterates Buy, $19 Target on Dell

Brean Murray Carret maintains its Buy rating and $19 target price on Dell (NASDAQ: DELL) as the company is favorably position opposite street consensus.

Brean Murray Carret says, "We continue to like the positioning relative to Jan Q Street EPS of $0.50 and could see $0.01 ‐ $0.03 EPS upside (although we believe Jan Q Street revenue of $15.9B may be a strong by $100M ‐ $300M). But we continue to believe the balance of HDD ASP increases and DRAM (contract) ASP declines to be a tailwind to the Jan Q. We also believe that Dell's “structural” operating margins could be tracking at 7.5% ‐ 8.0%. Dell's valuation can help as the stock trades close to trough levels on P/E ex‐cash ~5x, P/E <8x, and EV / EBITDA of ~3.5x."

DELL closed at $15.80 per share on Wednesday.