Dell Target Hike (DELL, MSFT, INTC, AMD)

By Douglas A. McIntyre Published Jul 17, 7:55AM EDT

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This morning, Credit Suisse is giving a little boost to shares of Dell, Inc. (NASDAQ:DELL). The broker has reiterated its "Outperform" rating on the stock, but has hiked its price target from $32.00 to $35.00 based on recent efforts. This may not seem substantial on first glance, but this translates into a 10% upside call to what now may be 20% upside in the stock (at least according to Credit Suisse).

The recent entrance into retail store sales is the main culprit for the call, although that will of course impact working capital and gross margin based upon having to keep more inventory outside of its traditional just-in-time model. Some of this will be offset by the restructuring plan and the 10% workforce cuts. One area that is worth noting is that this also points to a recovering domestic corporate spending trend, which has been elusive for the PC maker.

Shares of Dell are up 0.4% pre-market to $29.06. With Intel (NASDAQ:INTC), Advanced Micro Devices (NYSE:AMD) and Microsoft (NASDAQ:MSFT) reporting this week, we should get a more clear picture on the overall health of the PC-market in the US and internationally.

Jon C. Ogg
July 17, 2007

Jon Ogg can be reached at [email protected]; he does not own securities in the companies he covers.

About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.