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Don’t Follow David Einhorn Into Dell, Analyst Says

A day after billionaire investor David Einhorn revealed a bullish stance on Dell, one analyst took the opposite tack.

“Some people do see value in Dell, and it’s cheap for a reason. But we’re more concerned with the fundamentals. They’re getting crushed by Apple. We think the market’s underestimating that,” Sterne Agee analyst Shaw Wu said Wednesday on “Fast Money.”

Dell shares gained 30 percent in the past year. The stock traded at $18 per share midday, down 0.2 percent.

Sterne Agee downgraded the stock to “underperform” from “neutral” with a price target of $15 per share.

On Tuesday, Einhorn’s Greenlight Capital’s 13-F filing revealed that the fund had purchased 14.1 million shares of Dell in the fourth quarter. The SEC filing also showed new or increased stakes in Research In Motion, Xerox and Yahoo .

Wu forecasted that Apple would continue to gain market share in PCs at the expense of Dell, which also faces competition from Lenovo and Acer.

“A lot of what’s going on in the market is just catch-up to Apple,” he said. “I think just betting against Apple is just a wrong bet.”

Instead, Wu liked IBM and Hewlett-Packard, which was cheaper at 6 times earnings and had less exposure to the PC market than Dell.

“We think HP is a greater investment going forward because of the greater mix of software and services,” he said.

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