Citi maintains buy on Dell, NetApp even as firm says warning signs are 'flashing'
Thinglass

Citi maintained its buy ratings on Dell Technologies (NYSE:DELL) and NetApp (NASDAQ:NTAP) on Tuesday, even as the investment firm said the weakness in the PC market is getting worse and there are "flashing" warning signs going on in the enterprise market.
In a note to clients, analyst Jim Suva said that the sharp correction in demand for PCs, smartphones and other hardware is likely to remain a "key" area of focus over the next few weeks, as more tech companies report results. 
While enterprise infrastructure demand has remained resilient in the face of ongoing economic weakness, Suva noted that recent comments from Nvidia (NVDA) and other component makers in the supply chain have been "notable."
"We believe macro concerns will begin to impact infrastructure demand more significantly in [2023]," Suva wrote, adding that backlogs and order visibility will be areas of focus, as will cash generation and capital returns. 
Dell (DELL) is set to report second-quarter results on August 25, while NetApp (NTAP) reports on August 24 after the close of trading. 
A consensus of analysts estimate Dell (DELL) will report earnings per share of $1.64 on $25.62B in revenue. Conversely, NetApp (NTAP) is expected to earn $1.10 per share on $1.55B in sales.
Last week, investment firm Bernstein said Dell (DELL) would report an in-line quarter, as the PC and enterprise markets continue to soften.