(Reuters) - Shares of Dell Inc DELL.O tumbled 10 percent on Friday, a day after the company posted a 54 percent drop in quarterly profit, prompting at least two brokerages to cut their price target on the stock.

Credit Suisse cut its price target on shares of the No. 3 maker of personal computers to $14 from $16, while RBC Capital Markets cut its price target on the stock to $16 from $17.

“Dell’s results will continue to be disappointing in coming quarters as its market share and profits should remain constrained,” Credit Suisse analyst B. Shope wrote in a note.

A large portion of the decline stems from increased tax and interest burden, said the analyst, who expects the tax rate to be higher going forward.

Despite the weak third quarter, Dell executives on Thursday spoke positively about demand trends and expectations for a wave of new spending next year as companies update aging equipment.

“We believe Dell’s team is doing the right things to position the company ahead of a recovery, but we are cautious on the stock given multiple moving pieces,” RBC analyst Amit Daryanani wrote in a note, referring to the company’s restructuring and the integration with Perot Systems Corp.

Though Dell expects to see seasonal improvement, the January quarter is typically a consumer-centric quarter and gross margins are likely to be pressured due to an increased lower-margin consumer mix, Daryanani said.

On Thursday, Dell said gross margins fell to 17.3 percent from 18.8 percent in the year-ago period. The company posted lower-than-expected sales as it lost market share to competitors.

Shares of the company were trading down 9 percent at $14.41 Friday morning on Nasdaq.