Dell: Merrill Ups to Buy

Published on February 10, 2010
by Eric Savitz

Bank of America/Merrill Lynch (BAC) analyst Scott Craig this morning lifted his rating on Dell to Buy from Neutral, setting an $18 price target on the stock, which yesterday closed at $13.55.

Craig writes in a research note that he still thinks “long-term challenges remain” for Dell (DELL) and its business model.” But he notes that the stock is down 12% since November on skepticism around gross margin. “Low investor sentiment, high short interest, compressed valuation, possible enterprise refresh and likely positive EPS revisions position the shares for better performance in 2010,” he writes.

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