Citi Reiterates Buy on Dell

Citi is out with its report today on Dell DELL, reiterating Buy. In its report, Citi writes, "We rate Dell shares Buy / Medium Risk (1M) with a $20 target price. We expect a significant EPS growth in FY12 on gross margin expansion, a gradual macro recovery, and continued momentum in corporate PC replacements. While the shares are trading similar to HPQ 7-8x F12 EPS, we note that the shares are still trading at a discount to HPQ on an EV/EBITDA basis (3-4x) given the company's net cash position." At the time of posting, shares of DELL were trading pre-market at $14.69, down 7.03% from Tuesday's close.