Dell Computer ( DELL) was rising in the Friday premarket after being upgraded by J.P. Morgan and Morgan Stanley on optimism about personal-computer sales. Dell was upgraded to overweight from equal weight at Morgan Stanley, which noted the shares' valuation has fallen over the last year, and that they look cheap if almost $12 billion in cash is backed out of the market capitalization. It set a price target of $42. J.P. Morgan also noted an improving computer market in upgrading the shares to overweight from neutral, saying the industry's leading player should be able to capitalize on the next cycle. "We believe that accelerating desktop and corporate demand will favor Dell, helping it once again accelerate its growth relative to the market," J.P. Morgan said. Both firms have done or will seek investment banking business with Dell. The shares were recently up 76 cents, or 2.4%, to $32.75 on Instinet. The 52-week high is $37.18, the low $25.14.