Dell Revisited: Significant Upside Over Next Two-To-Three Years

Shares of Dell (DELL) have caught a strong bid over the last month, up 10% since news broke of Goldman Sachs' buy recommendation and subsequent price target of $13. GS initially rated Dell as a sell.

I generally don't place much emphasis on analyst actions, but the event was significant as it appeared to finally get some investors interested in the stock after a dismal 2012 in which the shares fell nearly 30%.

When I recommended Dell's shares as recently as October 1st, I emphasized Dell's apparent valuation and growth estimates as a PC maker, rather than the enterprise solutions firm it's in the process of becoming. Trading at a 6.4 times Enterprise Value/Net Income ratio, it's clear the market is still not buying Dell's ability to successfully make a major business transition, or investors are still not aware of that the relevance of the firm's PC operations in the context of the bottom line is on the decline.

READ FULL ARTICLE HERE...

Posted in and tagged with .

Why Open a Browser, get citybizlist in your InBox.