Dell Hits $25

Breifly. That’s the highest price in four-and-a-half months. Goldman upgraded the stock to neutral.

That said, in the absence of Dell restructuring — which we are not modeling into our assessment since there has been no inclination that Dell wants to do that — we think Dell’s choice is ultimately between growth and margins which in our model tops out at 7 percent normalized growth, 17 percent gross margin, and 6 percent operating margin, meaning that this is not the ‘Dell of old.’

Posted by on November 2nd, 2006 at 10:19 am


The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.