Dell Stock Down as Jefferies Has Gives a Fresh, Unimpressive Hold Rating On Outlook

Dell stock(NYSE:DELL) was expected to have a lackluster start to the week after Jefferies analyst Kyle McNealy handed the computer technology business a fresh stock rating of hold. According to McNealy, server shipments from business clients appear to be “stabilizing,” which should be good for Dell (DELL) in 2019. According to McNealy, he does not anticipate Dell’s (NYSE:DELL) market share in servers “becoming significantly smaller than it is currently.”

Developments behind Dell stock forecast 

Regarding computers, McNealy claimed that over the previous four quarters, Dell’s (NYSE:DELL) PC business had increased by 17% to 35%, which he claimed reflected “the post-pandemic turning point.”

The client solutions group, which Dell (NYSE:DELL) refers to as its PC business, may have some pressure on profit margins, according to McNealy, who said that recent reports regarding widespread PC market downturn suggest. If the PC market continues to decline, such earnings pressure “may become more serious,” according to McNealy. Additionally, McNealy projects a $39 per share price for Dell’s (NYSE:DELL) stock.

Although Wall Street analysts and Seeking Alpha authors rate Dell’s stock (NYSE:DELL) as a buy, Seeking Alpha’s quant system, which typically beats the stock market, rates the stock as a hold.

Worldwide PC shipments decreased in Q3, 

The decrease has been largely attributed to an unbalanced supply and declining demand. IDC Tracker showed that global PC shipments fell by 15% to 74.3 million units in Q3. Shipments, however, are still far above pre-pandemic levels despite a Y/Y decrease due mostly to cooling demand and inconsistent supply.

Preliminary Gartner data showsthat 68 million PCs were shipped over the world, down 19.5%, the sharpest fall since the middle of the 1990s. According to region, the U.S. PC market fell by 17.3% Year-on-Year, marking the fifth consecutive quarter of Year-on-Year drop; the EMEA PC market fell by 26.4% Year-on-Year; and the Asia Pacific market, excluding Japan, fell by 16.6% Y/Y.

Lenovo (OTCPK:LNVGY) (OTCPK:LNVGF), HP (NYSE:HPQ), ASUSTeK Computer (OTC:AKCPF) (OTCPK:ASUUY), Apple (AAPL), and Dell Technologies are the companies to watch for global PC shipments (NYSE:DELL). Despite shipments declining year over year, Lenovo increased its market share.

Featured Image – Megapixl © Alexeynovikov 

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