) to outperform.
Analyst Gillian Munson says she has a clearer picture of Dell's strategy than she's had in a while following recent talks with the company. She's more confident that its low-cost model will work, as will Wintel in enterprise. Munson feels she may be a bit early, but thinks now is the time to start buying Dell stock on dips. She suspects EPS cuts are slowing, with better growth becoming clearer.
Munson believes timing, valuation and the economy are Dell's biggest risks, and she feels she was too conservative on 2002 margins. She raised her $0.90 fiscal 2003 (Jan) EPS estimate to $0.94 and sees $0.71 EPS for fiscal 2002. Munson has a $33 target.