Even after weak guidance and a 13% sell-off on Friday, Wall Street analysts still look for a rebound in Dell Inc. (NASDAQ: DELL) shares. That is, if you look at their ratings and price targets.
Thomson tracks 30 analysts who cover the stock and their average rating is a "buy" or a 2.43 on a scale of 1 to 5. Perhaps more stunning is that the price target that broker researchers have on the shares is over $33. The stock trades at $24.54.
Coverage on big cap stocks is notable for the fact that analysts do not like to put "sell" ratings on companies. For one thing, it may deny them access to company management. But, Dell is a bit of a special case.
With a fuzzy forecast of modest sales in the next quarter and Hewlett-Packard (NYSE: HPQ) taking global PC market share, it is hard to see how Dell can do much better, at least until the middle of next year. The company also has said that it may have more restructuring costs and that component costs are no longer falling fast.
Wall Street has it wrong on Dell.
Douglas A. McIntyre is an editor at 247wallst.com.
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