Dell: J.P. Morgan Turns Bearish as It Chops PC Forecast
J.P. Morgan analyst Mark Moskowitz this morning cut his rating on Dell (DELL) to Underweight from Neutral, chopping his price target to $8.50 from $12. The move is connected to his new, grimmer outlook for 2009 PC sales: He now expects world-wide shipments to drop 13.5 percent this year, down from his previous forecast for a decline of 3.7 percent.
“Dell’s high PC exposure, particularly in the enterprise, could force the company to seek revenue offsets where incremental costs and competition could detail a return to margin stability or result in cash burn,” he writes.
