The Dividend Daily

PC maker Dell Inc. (DELL) saw its coverage restarted on Monday as a “Buy” by analysts at Goldman Sachs.

The analyst also set a $19 price target on Dell shares, which closed on Friday at $15.40. The analyst noted that “Dell should see an outsized benefit from a corporate PC refresh cycle, which we expect to begin in 2010, and the resulting share regains and incremental revenue should translate to significant earnings upside as Dell continues to optimize its cost structure.”

Goldman also boosted its 2009 and 2010 EPS estimtes for the company to $1.09 and $1.37, respectively.

Dell shares rose 31 cents, or +2%, in premarket trading Monday.

The Bottom Line
Shares of DELL are slightly off 52-week highs of $17 a share. The stock has technical support in the $13-$14 price area. If the shares can continue the recent uptrend, we see overhead resistance around the $16-$17 price levels. We do not currently rate this non-dividend paying stock, but we do follow the company closely.

Dell Inc. (DELL) does not currently pay a dividend.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.