Bank of America Merrill Lynch Discusses Dell's Analyst Day

Bank of America Merrill Lynch is out with a research note on Dell DELL after the company held its analyst day. It has a Buy rating and a $19.50 price target on shares. In a note to investors, Bank of America Merrill Lynch writes, "Dell laid out its profit and growth strategy at its analyst day, with focus on selling solutions to midmarket segment (SMB TAM of $820bn and large business of $620bn). The company maintained its long-term op model (sales growth of 5-7% and GAAP op margin of 7%+) and F2012 guidance (5-9% sales growth and 12- 18% op margin growth). We believe Dell's F2012 outlook is conservative, especially its op profit guidance, given increasing enterprise mix, improved consumer profitability and higher mix of SMB." Shares of DELL gained 41 cents yesterday to close at $16.42, a gain of 2.56%.