Collins Stewart Reports on Dell

Collins Stewart commented on Dell DELL in a report released today. In the report, Collins Stewart was mixed in its assessment of the company. Collins Stewart writes, “In summary, Dell's GM performance was well above ests, but most other results & comments were in-line w/ prior checks. The difficulty in recommending the shares comes down to three items, A) what is the sustainable GM & OM level, B) what is LT (next 2-3 yrs) rev growth trajectory esp. given flat growth in F1Q; & C) can Dell grow EPS faster than rev growth. Right now the company is doing very well on A, not so well on B, & without visibility on both of these issues it's tough to have conviction on C, thus holding us back from a positive bias on the shares.” Collins Stewart currently has a Neutral rating on Dell and a price target of $18.00. Shares of Dell closed yesterday at $15.90, up $0.07 from the opening bell.