Bank of America Merrill Lynch Maintains Buy On Dell (DELL)

Bank of America Merrill Lynch is maintaining its Buy rating and $19.50 price target on shares of Dell DELL after the company reported earnings last night. In a note to investors, Bank of America Merrill Lynch writes, "F1Q12 non-GAAP EPS of $0.55 beat our/Street of $0.43/0.44 mostly on robust gross margin, somewhat offset by operating expenses and slightly lower revenue. For the 3rd consecutive quarter, margins were better than expected. Management noted that at least 50% of the improved margins are due to Dell actions and mix, as opposed to favorable components costs, which bodes well for the stock. Guidance for F2012 implies operating margin expansion of only ~60bps, which is very conservative given gross margin tailwind and F1Q12 results." Shares of DELL are up 91 cents to $16.81, a gain of 5.7% in pre-market trading.