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Dell Downgraded to Sell From Hold by S&P Equity

Published: Tuesday, 31 Aug 2010 | 11:43 AM ET
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By: CNBC.com

S&P Equity cut its rating on tech giant Dell to "sell" from "hold" Tuesday.

Dell
AP

"Looking at cross-currents in the PC markets, we are raising our FY 11 (Jan.) operating EPS estimate to $1.29 from $1.25, but trimming our FY 12 EPS estimate to $1.40 from $1.47," S&P Equity said in a press release.

"Employing a lower target P/E multiple closer to peers, we are reducing our 12-month target price to $11 from $15," S&P Equity said.

Dell is expected to counter or raise rival Hewlett-Packard's [HPQ  Loading...      ()   ] $30 a share offer for data-storage firm 3Par [PAR  Loading...      ()   ] by Wednesday, although some analysts speculate Dell will bow out of the bidding war because of the increased price tag.

Dell shares [DELL  Loading...      ()   ] were lower on the New York Stock Exchange Tuesday.

© 2012 CNBC.com

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