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Dell Coverage Resumed at Citi With a Buy Rating

Citi also placed a $120 price target on Dell as the firm sees smooth sailing ahead for the sale of its Boomi cloud business.
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Shares of Dell Technologies  (DELL) - Get Dell Technologies Inc Class C Report were rising slightly Wednesday after analysts at Citi reinstated coverage of the company with a buy rating and a $120 price target. 

Citi does not anticipate any regulatory challenges to Dell's pending sale of its Boomi cloud platform division for $4 billion in cash to Francisco Partners and TPG Capital. And it also expects Dell to make announcements soon on its plan to spin off its 81% stake in VMWare. 

"We see the following positive catalysts ahead for the company including May 5-6 virtual Dell Technologies World as well as earnings tentatively planned for May 27 and August 26 at which any of those events Dell couple potential give updates on the timing and IRS approval for the tax free spin of VMW and Form 10 filing in addition to robust PC demand," said analyst Jim Suva. 

The sale of Boomi, part of efforts by CEO Michael Dell to streamline the personal computer maker’s operations, is expected to close by the end of this year, the companies said in a statement. Additional terms weren’t disclosed.

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Boomi specializes in integrating different cloud platforms for companies and has more than 15,000 customers. Dell agreed to acquire the company for an undisclosed amount in 2010, a statement showed at the time.

The VMWare spin-off would create two standalone companies, with Dell receiving a special dividend of between $9.3 and $9.7 billion.

Read More: Why Jim Cramer Likes Dell, But Not VMWare

Dell acquired its stake in VMWare in 2015 as part of its acquisition of EMC.

Shares of Dell were rising 0.5% to $97.04 in morning trading Wednesday.