CS First Boston maintains buy on Dell Computer (DELL

).

Analyst Kevin McCarthy says the company guided Q2 revenues down sequentially 3%-5% and guided down the EPS to $0.15-$0.17. McCarthy says Dell's comments should not come as a major surprise. He shares the company's view, and believes individual fundamentals could worsen during the next two quarters, but could then improve by Q4 and experience a meaningful recovery in Q1 and Q2 of fiscal 2002.

McCarthy notes Dell remains his only buy-rated stock in the group and he prefers to add to positions in the low $20s and lighten above $25 until industry conditions wash out sometime during Q3. He maintains his $0.70 fiscal 2002 EPS (Jan.) estimate.