Dell's downgrade forecast results in share price plunge 7%

The company's shares fell more than 7% per cent in trading in Wednesday, when the company announced a cut in Tuesday revenue forecasts for fiscal year 2012, due to weak corporate technology spending, the news of the Beijing time of August 17. Dell lowered its revenue growth forecast for fiscal year 2012 from 5% to 9% to 1% to 5%, and said weak economic growth could weigh on government and corporate spending levels.　　Analysts said Dell's downward forecasts were not surprising given the economic uncertainty.　　Dell's second-quarter results were stronger than expected, but investors are now focused on the company's expected downgrade and negative views on the outlook. The Royal Bank of Canada's capital Markets said in a research report to clients that the stock's share price could maintain range volatility in the short term due to the saw-saw impact of the improved profitability of Dell and slowing sales growth.　　The investment bank lowered its target share price from 20 to $17, but maintained a "consistent" rating on the unit. Bank of America Merrill Lynch believes Dell's current investor sentiment, low valuations and a possible rebound in corporate spending will drive Dell's share price to outperform in 2011. The agency raised Dell's target share price from USD 18 to $18.50 and maintained a "buy" rating for the unit. Leisurely)