Is There a Bullish Case for Dell?

On Monday, Dell (NASDAQ:DELL) landed a two-notch upgrade from an analyst at Goldman Sachs that sent shares up as much as 8 percent before closing just over 4 percent higher. Dell added to those gains on Tuesday, closing up an additional 2.49 percent as investors studied the surprise bullish call by one of Wall Street’s most respected banks.

Where’s the Bullish Case for Dell in a Weak Market?

The mood surrounding the upgrade isn’t so much that Dell is poised to take off — although investor sentiment has to some degree — but that the negative environment that has built up around Dell and the PC industry has been exaggerated. The headwinds may be strong, but it doesn’t mean that progress can’t be made.

Catalysts are critical to discovering winning stocks. Check out our newest CHEAT SHEET stock picks now.

“Every now and then a piece of research comes along and it just blows your mind. It forces you to reexamine some of your assumptions,” said Mad Money host Jim Cramer about the Goldman upgrade, according to CNBC. In an incredibly rare move, Goldman upgraded the stock straight from “Sell” to “Buy.” Perhaps things aren’t as bad as we all thought.

Cramer doesn’t necessarily see an aggressively bullish case for the company as much as he agrees that there might be some upside to be had. The analyst’s new target of $13 per share represented a roughly 34.5 percent upside on the stock’s closing price before news of the upgrade broke.

Cramer, as well as the Goldman analyst, also agrees that downside risks remain for Dell and the PC industry — it just takes one glance at Hewlett-Packard (NYSE:HPQ) or the growing dominance of Apple (NASDAQ:AAPL) to ignite concerns…