Dell shares have risen strongly after the computer maker surprised Wall Street with an improved outlook for the coming year

At least two analysts raised their target prices on Dell shares, with Bear Stearns setting a target of $52 (€40.08) by the end of 2005.

The shares jumped to $38.79 at the start of Nasdaq trading, up from a Thursday close of $37.25 ahead of the company's release of third-quarter results. Last night the shares closed at $40.44, up 8.56 per cent.

Dell reported a 25 per cent increase in third-quarter net earnings, helped by higher gross margins that reflected lower component costs. The company also said it expects to reach $60 billion in revenue by the end of 2005 - a year ahead of schedule.

"We are trying to let you know that we are ahead of plan," Dell chief executive Mr Kevin Rollins told investors during a conference call following its quarterly report.

The $60 billion estimate was rough and could range between $58 billion and $61 billion, he said. "I think we are now in shooting distance," Mr Rollins added.

During the third quarter, Dell continued to take market share from rivals, analysts said, despite a weakening market for PCs that followed six strong quarters of rebounding business spending.

Dell defied the trend, with unit shipments growing 22 per cent, or twice the rate of growth. Third-quarter net income rose to $846 million, or 33 cents per share, compared with the year earlier quarter's $677 million, or 26 cents per share.

Revenue for the Round Rock, Texas-based company rose 18 per cent to $12.50 billion from $10.62 billion.

Growth was led by notebook units, which increased by 35 per cent. Desktops grew by 18 per cent and servers grew by 19 per cent. Revenue from consumer electronics such as flat panel televisions and music players grew by 37 per cent worldwide.

Dell shipments grew by 31 per cent in its Europe, Middle East and Africa region - twice the market rate. Dell employs 3,000 people at its European manufacturing headquarters in Dublin and a further 1,200 at two sales support sites at Bray, Co Wicklow, and Cherrywood, Co Dublin.

Analysts said Dell's comments on the $60 billion revenue target implied it could grow revenue by 18 per cent to 20 per cent next year. Analysts' average growth forecast was 15 per cent.

Bear Stearns said Dell shares could climb 33 per cent by the end of 2005 to $52.

"We think [ the target price] is warranted for Dell as a 'poster child' for Darwinian economics with above-market growth," Bear Stearns analyst Mr Andy Neff said of Dell's efficient sales, manufacturing and distribution model.