UPDATE: Goldman Sachs Upgrades Dell to Buy; Value Amid Pessimism

Goldman Sachs raised its rating on Dell DELL from Sell to Buy and increased its price target from $9 to $13. Goldman Sachs noted, "Our bullish view is based on three key factors: 1) while PC demand remains depressed, we believe the secular bear case has become consensus and we could begin to see sentiment and expectations tilt positively in 2013; 2) consensus expectations for Dell's FY2014 (CY2013) are down 28% from peak and we believe this reset has produced a positive risk/reward for the stock; 3) Dell's net cash balance provides some downside buffer as it produces opportunity for an LBO or levered recap under the right conditions, though our analysis suggests an LBO would still be challenging at this point." Dell closed at $9.64 on Friday.