Jan. 3 (Bloomberg) -- Dell Inc. rose to the highest price in more than four months, gaining for a third trading day, after an analyst at UBS AG raised his price target on optimism for the computer maker’s new offerings for corporate customers.
Dell gained 2.5 percent to $10.94 at the close in New York, the highest price since Aug. 27. The stock has risen 9.7 percent this week.
UBS’s Steven Milunovich said he spoke with executives including Marius Haas, Dell’s president of enterprise solutions, whose priority is broadening audience for the company’s business computing products. Milunovich said Dell’s corporate-product lineup has improved, and the Round Rock, Texas-based company is taking market share from Hewlett-Packard Co. and International Business Machines Corp. in some server markets.
“Dell has cobbled together an attractive portfolio of enterprise technology,” Milunovich wrote in a report today. The analyst raised his 12-month price target on the shares to $10.50 from $9.75. He has a neutral rating on Dell stock.
Dell is securing meetings with companies’ chief information officers, and has garnered interest in products including integrated computer servers, networking gear, data-storage devices and software, wrote Milunovich.
“The most common refrain is, ‘We didn’t know Dell did that,’” he said. In October, Dell introduced its Active System computer that combines these functions inside a single chassis.
Dell has spent more than $12.7 billion on 18 acquisitions since 2009, and will focus on small and medium-size deals to add tools that complement its personal computers and servers, founder Michael Dell said last month.
Dell is struggling to transform from a supplier of PCs -- which still account for almost half its sales -- into a maker of more lucrative servers, business software and storage and networking gear.
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