Auriga Anticipates Solid Dell Quarter

Auriga is expecting a solid quarter from Dell Inc. (NASDAQ: DELL) when it reports its F1Q12 (April) results, scheduled for Tuesday, May 17 after the close.

“Longer term, we believe Dell can grow its top-line roughly in-line with overall IT spending as it transforms itself into a full-service enterprise vendor,” Auriga writes. “The real allure to investors is likely to be the slow and steady margin expansion story that accompanies that transformation. While there will likely be bumps in the road along the way, attractive free cash flow, returns on capital and valuation suggest to us that shares remain a good buy for value-oriented investors.”

Dell closed Monday at $16.00.