Bank of America’s Keith Bachman this morning trimmed his price target for Dell (NASDAQ:DELL
) to $28 from $29, and reduced his EPS estimate for the fiscal fourth quarter ending in January to 30 cents a share from 31 cents. He also cut his fiscal 2008 estimate to $1.37 a share from $1.38. The fourth quarter EPS cut reflects a $200 million cut in revenue expectations for the quarter, which is due to lower projected desktop PC sales.
Dell’s orders, focused on large corporate customers in developed economies, are slow in our view,” he wrote in a research note this morning. “In contrast, consumer and emerging geography demand appears strong, or at least reasonable. Thus far, Vista has had no impact on demand…We believe that Dell’s [fourth quarter] margins will be flat to down vs. the October quarter (by 20-30 basis points.), which we believe is more conservative than [the] consensus view.
Bachman continues to maintain a Neutral rating on the stock.
Dell shares this morning are unchanged at $24.46.
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