UPDATE: Brean Murray Carret Lowers PT to $16 on Dell; Sales Missteps, Soft PC Revenue

Brean Murray Carret reiterates its Buy rating on Dell (NASDAQ: DELL) and reduces its price target from $21 to $16.

Brean Murray Carret comments, "Dell missed Street revenue and EPS although GM was intact at 22.0% (in‐line with our estimate) – revenue of $14.4B was 3% softer than Street of $14.9B and EPS of $0.43 was softer than Street of $0.46. …Importantly, with changes to the sales organization upcoming, Dell is going to hold off on expanding SG&A for the time being, which can help operating margins. Not looking to sugarcoat the results but of the $0.03 miss, $0.01 was from tax (one‐time) and of the other two significant factors, Dell's mis‐execution in sales (which they have moved to rectify) was more meaningful than PC softness of corporate push‐outs."

DELL closed at $15.08 on Tuesday.