) to overweight from equal-weight.
Analyst Rebecca Runkle says she believes Dell's fundamental story has improved over the past 12 months, yet the computer maker's year to date underperformance makes it look that much more compelling to her on nearly every valuation metric she examines. Runkle says Dell looks particularly compelling due to its $11.9 billion in cash and cash-flow capabilities. She thinks the company's consistency, quality, and absolute levels of cash are undervalued in the current marketplace.
Runkle continues to believe 2004 will bear witness to continued consumer, small-business, and medium-business demand. She sees $1.24 2005 earnings per share. She has a $42 target. Runkle owns Dell shares.