Bank of America dropped its price target on Dell (DELL) from $29 to $28 today. Call it a rounding error. The reasons were that sales to corporate customers, the core of Dell’s business, have been slow, and Vista has not come along yet to save the PC world.
But, there are other things that may push Dell lower. The resurgence of Sun (SUNW) means that the company is probably still picking up share in the server market. HP (HPQ), IBM (IBM), and Dell are the other significant companies in that business. Sun is getting the share from someone.
Investment bank UBS thinks Dell is also losing share in the PC markets in the US and Europe.
Dell’s shares have moved from $19 in July to over $24 recently. But, as companies like Motorola (MOT) and AMD (AMD) have discovered, the punishment for missing earnings this season is pretty severe.
Douglas A. McIntyre can be reached at [email protected]. He does not own securities in companies that he writes about.
Find a Qualified Financial Advisor (Sponsor)
Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to 3 fiduciary financial advisors in your area in 5 minutes. Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests. If you’re ready to be matched with local advisors that can help you achieve your financial goals, get started now.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
