(Reuters) - Half a dozen brokerages cut their price targets on Dell Inc's stock, after the company slashed its full-year outlook as customers delayed buying new computers ahead of the launch of Microsoft Corp's Windows 8 operating system.
The stock was set to open nearly 6 percent lower on Wednesday.
The No. 2 U.S. PC maker forecast earnings per share of "at least" $1.70 for fiscal 2013, compared with its previous view for more than $2.13.
Dell's outlook suggests a much softer second half for PCs due to tablet cannibalization even in corporate markets and a pause ahead of Windows 8 in the consumer market, Barclays Capital analyst Ben Reitzes wrote in a research note.
The accelerating popularity of mobile computing devices such as Apple Inc's iPad has been eroding PC sales hurting companies like Dell, who were not able to gain a foothold in the tablet market.
"We believe the larger and a more secular issue for Dell is faster than anticipated declines in PCs due to growth of Apple products and increased competition from Lenovo," RBC Capital Markets analyst Amit Daryanani wrote in a note to clients.
Dell is also struggling to defend its market share against Asian rivals like Acer Inc and Lenovo Group Ltd.
"We note that Lenovo has been very aggressive in gaining share in BRIC markets, which would make it difficult for Dell to grow revenues in these markets without participating in low-end PC markets," BMO Capital Markets analyst Keith Bachman said.
Revenue from Brazil, Russia, India and China (BRIC) fell 15 percent in the second quarter.
Dell shares fell to $11.63 in premarket trading. They had closed at $12.34 on the Nasdaq on Tuesday.
(Reporting by Chandni Doulatramani in Bangalore; Editing by Joyjeet Das)
Source: http://news.yahoo.com/dells-weak-outlook-draws-price-target-cuts-120826749--finance.html
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