UPDATE: Stifel Nicolaus Cuts PT to $14 on Dell; Maintains Buy on Valuation

Stifel Nicolaus reiterated its Buy on Dell

but lowered its price target from $17 to $14. Stifel Nicolaus noted, "While we admit that Dell's F3Q13 results are likely to provide more negatives than positives (expect focus on product GM%, large enterprise OIM%, and a lack of share repo), we continue to view Dell's overall transformation strategy (albeit excluding ongoing storage weakness) as playing out with enterprise solutions now accounting for 35% of total revenue. Dell's F4Q13 revenue guide of +2%-5% seq. ($14.0-$14.4B) brackets our prior $14.2B est. (street: $14.5B), which includes $180-$200M in Quest revenue; or reflecting -13% yr/yr on an organic basis." Dell closed at $9.56 on Thursday.