Dell Will Be A Key Beneficiary of The PC Upgrade Cycle

Goldman Sachs resumes coverage on Dell Inc. (NASDAQ: DELL) and gave DELL a Buy rating at a 12-month price target of $19. Goldman believes that DELL will benefit from a corporate PC refresh cycle and will show better earnings as DELL is trying to optimize its cost structure.

Goldman believes Dell will report better than expected earnings and beat analysts’ expectations. Goldman expects DELL to report earnings of $1.09 for CY2009 and $1.37 for CY2010 from their previous estimates of $1.07 for CY2009 and $1.35 for CY2010.

As a result, Dell Inc. (NASDAQ: DELL) surged 2.14% to $15.73 in the pre-market session.

DELL has a 52-week range of $7.84 - $17.26. During the current calendar year, Dell has surged over 50%.