Collins Stewart Maintains Neutral, PT of $17 on Dell

Collins Steward reiterates its Neutral rating and $17 price target on Dell Inc. DELL on EPS upside and slowly emerging visibility. According to Collins Steward, “Revs of $15.4B, flat y/y & down 2% q/q were below views of modest y/y growth. Upside in Services & Servers was off-set by lower client (PC), Storage & SW/Peripherals revs. GM's were better than expected at 23.1%, 30 bps ahead of our est. … What's holding back the shares, especially in the light of very good performance in a number of areas, is clarity on eventual top-line growth, op ex trajectory & sustainable OM levels/direction.” DELL closed at $15,63 per share on Tuesday.