S&P Equity cut its rating on tech giant Dell to "sell" from "hold" Tuesday.
"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 raiserival Hewlett-Packard's $30 a share offer for data-storage firm 3Par by Wednesday, although some analysts speculate Dell will bow out of the bidding warbecause of the increased price tag.
Dell shares were lower on the New York Stock Exchange Tuesday.