UPDATE: Citi Color on Dell Target Increase

Citi, which raised its PT on shares of Dell DELL, is providing some color on the stock. “We reiterate a Buy rating on Dell shares on the heels of yet another significant gross margin surprise,” Citi writes. “Even if we assume sharp gross margin degradation in PCs for the remainder of the year, our calendar 2011 (FY12) EPS rise from $1.73 to $2.10. “While we continue to expect a period of low or no EPS growth in CY12 as gross margin normalizes and revenue growth returns to trend, we believe this is fairly reflected in valuation at just 6X FTM our revised non-GAAP operating EPS (excluding net cash).” Dell closed Tuesday at $15.90.