Dell's Earnings Results Expected On 11/18

JP Morgan has published a research report on Dell Inc. DELL in response to the company's 3Q preview while earnings results are expected on 11/18. In the report, JP Morgan writes "We think shares of Underweight-rated Dell could trade sideways to down in the near to mid-term. Despite easing component pricing, we do not expect Dell's model to exhibit the flex of yesteryear. The crux of our call is that gross margins will remain below 18%, which is not what we think the Bulls expect to be reported on Nov. 18. We are concerned that gross margins could exhibit little upward momentum due to structural limitations in the PC business related to the build-to forecast approach and increased channel protection. Additionally, our checks indicate that Dell's market share gains could be easing in both servers and storage." JP Morgan maintains its Underweight rating and $15.50 price target. Dell Inc. closed yesterday at $13.93.