Dell Returns to Trading in the Market on the NYSE


 
 
11:47 12/28/2018

Dell Technologies Inc. is trading again in the market and made its return on the NYSE. It's been nearly six years since the company has been public when it's founder and CEO Michael Dell took the company private back in 2008. Dell shares began trading on the NYSE under the symbol "Dell" after it bought back shares that tracked the financial performance of software maker VMware, in which Dell had an 81 percent stake. The cash-and-stock deal was worth nearly $24 billion. By buying back these shares, Dell was able to avoid the traditional IPO process. The stock opened at $46, giving it a $16 billion market cap according to Refinitiv. In the last quarter, the computer and data storage company saw a jump of 15% in revenue and has forecast total adjusted revenue in a range of $90.5 billion to $92 billion for 2019. JPMorgan is the first to start research coverage on the stock and rated it "overweight." The firm called it “a formidable leader in IT client solutions.” The firm also has a $60 price target on the stock. JPMorgan analyst Paul Coster called Dell “one of the largest, most comprehensive, most integrated product and service companies in the IT space,” and “a market leader in multiple product categories.” The company's “positive momentum may justify a premium valuation as the firm pays down debt,” said the analyst, while “there could be near-term volatility as event-driven investors exit the stock,” he expects it to outperform over the next 12 to 18 months. Coster wrote, "Dell is a formidable leader in IT client solutions. It is with fuller integration of EMC and VMware that Dell is recapturing share in the IT infrastructure market, leveraging global sales capacity, manufacturing scale, product breadth, and technology differentiation to become a one-stop IT shop for customers in all geographies and market segments." Morgan Stanley analyst Katy Huberty recently wrote, "We see storage as the biggest opportunity to take share given the refresh of Dell's midrange product line and improving sales productivity."0


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