UPDATE 1-RESEARCH ALERT-Cowen upgrades Dell to outperform

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July 31 (Reuters) - Cowen & Co upgraded personal-computer maker Dell Inc (DELL.O) to "outperform" from "neutral" as it believes the company is reducing operating expenses, gaining market share and growing revenue in consumer, small and medium-sized businesses, and emerging markets.

Analyst Louis Miscioscia raised his 2009 financial year and 2010 financial year earnings estimates on the company to $1.70 a share and $2.07 a share, respectively. The prior 2009 and 2010 forecast was $1.56 a share and $1.80 a share, respectively.

"Dell is in the process of launching a new line of consumer retail PCs, which should greatly help improve the marginally profitable retail businesses, adding $30 million quarterly," Miscioscia said.

The new E-Series notebooks will increase customer interest and reduce product cost, he said.

In April, Dell cut 3,700 jobs, which should drive $65 million in quarterly savings going forward, the analyst said.

Miscioscia expects another 1,900 job cuts in the July quarter, which should add $33 million to quarterly savings. This may add 10 cents a share to 2009 earnings, Miscioscia said.

The analyst, who has a price target of $24 on the stock, expects another 2,225 job cuts by the beginning of 2010.

Shares of Dell were trading up more than 4 percent at $24.99 Thursday morning on Nasdaq. (Reporting by Adheesha Sarkar in Bangalore; Editing by Pratish Narayanan)