Bailey highlighted a "strong rebound" in corporate demand as the economy shows more signs of recovery.
The analyst explained that in the January quarter, H-P's PC unit shipments were up 26% year-over-year with revenue up 20%, driven largely by consumer sales. Dell, however, has been struggling with soft enterprise demand, said Bailey, although this is set to change.
"Dell's recovery should begin to accelerate in the next few quarters as the company begins to benefit from a ramping corporate PC replacement cycle," he wrote.
Tech research firm IDC recently reported that shipments of PC microprocessors grew more than 31% year-over-year in the fourth quarter of 2009, providing yet more evidence of an improving economy.Dell's stock gained 6 cents, or 0.43%, to reach $13.94 shortly after market open on Monday, while H-P dipped 17 cents, or 0.33%, to $51.86. -- Reported by James Rogers in New York Follow James Rogers on Twitter and become a fan of TheStreet.com on Facebook.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV