J.P. Morgan Raising Price Target On Dell (DELL)

J.P. Morgan Chase & Co. is raising its price target on Dell Inc. DELL to $16 from $15.50, but is keeping its Underweight rating. In a note sent to investors, J.P. Morgan writes, "Shares of Underweight-rated Dell stand to exhibit a relief rally in the near term in our view. We are skeptical of the duration, though. Dell's F3Q11 (Oct.) revenues were light, as the company appears to be losing market share in both servers and storage. We had highlighted this prospect ahead of yesterday's call. The bigger story, however, was the gross margin expansion to 20.0%, versus 17.2% in the prior quarter. This outsized margin improvement is what the Bulls had been expecting, and they got a little extra. Our Underweight-rating could be bruised in the near term, but we think the main drivers (favorable component pricing and mix) are not likely to be long-lasting." Shares of DELL are up 36 cents in pre-market trading to $14.02, a gain of 2.6%.