) to strong buy from buy.
Analyst Charlie Wolf says his upgrade was based on the strength of Dell's continued market share gains, entry into new markets, and the company's most compelling valuation in more than five years. Wolf notes Dell continues to grow shipments at a rate at least 20 points faster than the overall PC industry, and shipments could increase in fiscal 2004 (Jan). Also, he says Dell's entry into new markets, such as printers, could materially augment growth in the traditional market. He trimmed the $1.10 fiscal 2004 earnings per share estimate to $1.05 to reflect the increase in shipment growth, since falling average selling prices could limit revenue growth to 18%. He has a $35 target.