Last year's runup in Dell ( DELL) brought the stock within 10% of Raymond James' new price target, triggering a downgrade.

The brokerage also issued its first estimate for Dell in the year ending January 2007, predicting the computer maker will earn $1.85 a share. Raymond James expects Dell to earn $1.28 a share in the year ending January 2005 and $1.56 a share in the year ending January 2006.

Dell, which was cut to outperform from strong buy, closed Monday at $41.79, up about 23% from its 2003 close of $33.98. The shares were recently down 25 cents, or 0.6%, to $41.54 in premarket trading.

Raymond James' new 12-month price target is $46, up from $43. At $46, Dell would trade about 25 times to 30 times the brokerage's calendar 2006 estimate.

The fiscal 2007 estimate reflects expectations for 14% revenue growth derived from overseas expansion as well as strength in the systems, storage peripherals and services markets.