Goldman Sachs has published a research report on Dell Inc. DELL and has resumed coverage on the company with a Sell rating.
In the report, Goldman writes "While Dell recently enjoyed some margin tailwinds as component prices eased considerably, these tailwinds are likely to be short-lived as PC pricing becomes more aggressive and the company begins to make the necessary investments for its enterprise transformation. This, coupled with our expectation for a considerable slowdown in PC and server market growth, could lead to earnings disappointments in coming quarters. In addition, we believe that an effective enterprise transformation could also require $15-$20 billion in acquisitions over the next 2-3 years, and we believe this is far higher than most currently anticipate."
Goldman has also issued a $10 price target on Dell Inc., which closed Friday at $13.89.
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Posted In: Analyst ColorPrice TargetInitiationAnalyst RatingsComputer HardwareDELLGoldman SachsInformation Technology
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