Robbie Stephens Rates Dell 'Attractive'

Analyst Eric Rothdeutsch says Dell can pass costs on to customers more aggressively than its competitiors

Robertson Stephens maintains its long-term attractive recommendation on shares of Dell Computer (DELL ).

Dell says Q1 results will meet previous guidance and that the company will cut 3,000-4,000 full-time jobs.

Analyst Eric Rothdeutsch says the worldwide PC market should grow 10% in calendar 2001. He believes the company's low-cost structure and operational efficiencies give it the ability to pass along materials costs declines to customers more aggressively than competitiors. He sees Dell continuing to increase market share. However, he remains concerned that aggressive pricing, which sparked so much demand in Q1, may pull down demand and sales in Q2 and put Dell on track for a sequential down quarter.

Rothdeutsch maintains his $0.69 fiscal 2002 (Jan.) and $0.82 fiscal 2003 EPS estimates.

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