Market Overview

UPDATE: Sterne Agee Downgrades Dell to Underperform


According to a research report published today, Sterne Agee has downgraded Dell Inc. (NASDAQ: DELL) from Neutral to an Underperform rating as it is concerned with Dell's fundamental position.

In the report, Sterne Agee commented, “We believe DELL remains in a tough competitive position sandwiched between lower-cost players (Lenovo and Acer) and AAPL encroaching more in its core PC business as Macs and iPads gain share. Despite efforts to grow beyond a PC company, we estimate 70%-75% of its business is tied to PCs. This includes peripherals, software, and services. In addition, we see HPQ, IBM, and CSCO competing more in its core market in small-medium business (SMB) and servers. We view DELL as a company in transition that needs to take more aggressive steps. A key risk to our rating is if the equity market continues to be favorable, causing a further upside bias in shares.”

Sterne Agee maintains its $15 PT on Dell, which closed yesterday at $18.04.


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Posted-In: Sterne AgeeAnalyst Color Downgrades Analyst Ratings

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