Dell Inc.(NASDAQ:DELL)’s shares soared as much as 5%
in the pre-open session lifted by positive note and an upgrade from an analyst
at Goldman Sachs, citing favorable Risk/Reward.
The brokerage firm lifted the rating on the stock to
Buy from Sell as well as price target has been raised by $4 to $13 a share.
The firm noted that Dell'snet cash provides support
to downside, producing an opportunity for a leveraged buyout (LBO) or
recapitalization under the right conditions.
Goldman notes, however, that an LBO would be
"challenging" at this point.
The firm sees bad news in the PC market having been
baked with, with the secular bear case now the Street consensus. Overall
risk/reward has turned positive on the company.
Sentiment could take a turn for the positive on Dell
in 2013, Goldman noted.
DELL is one of the worst performed so far this year
and down 31% as of Friday’s closing price of $9.64.
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