June 15 (Reuters) - Goldman Sachs upgraded Dell Inc DELL.O to “neutral” and removed the world’s No. 2 PC maker from its Americas sell list, saying it saw cyclical pressures easing.
PC shipments were rebounding in June, after a weaker-than-expected May, and PCs should see more normal seasonal patterns in the back half of the year, Goldman said in a research note to clients.
Dell’s ongoing efforts to outsource its product development and manufacturing will likely allow it to maintain or improve margins over the intermediate term, said Goldman, which has a price target of $14 on the company’s stock.
Last month, Dell reported sharply diminished first-quarter profit as the downturn hit tech spending, but said there was hope for a surge in sales next year as corporations replace their computer systems.
Shares of the Round Rock, Texas-based company which have fallen almost 44 percent in the last year, closed at $13.39 Friday on Nasdaq. (Reporting by Sayantani Ghosh in Bangalore; Editing by Aradhana Aravindan)