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

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