Zacks Investment Research downgraded shares of Dell Inc (DELL) from OUTPERFORM to NEUTRAL on September 20, 2012, with a target price of $11.00.
Dell reported modest second quarter results. Earnings per share exceeded the Zacks Consensus Estimate, but both revenue and earnings declined on a year-over-year basis. While the Personal Computer business was particularly weak, all business segments were impacted by reduced business activity in developed markets. This apart, the cannibalization of the notebook business is also acting as a dampener. Opportunities in the Electronic Medical Record sector and increased focus on cloud computing remain positives. Moreover, the company is constantly introducing new products in the tablets and ultra book segment and exploring new lines of business to initiate growth. So, we maintain a Neutral rating on the stock.
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