Wunderlich Securities Starts EMC (EMC) at Buy; Company Seen as Undervalued
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Price: $25.60 +0.23%
Rating Summary:
14 Buy, 25 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 11 | New: 14
Rating Summary:
14 Buy, 25 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 11 | New: 14
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Wunderlich Securities initiated coverage on EMC (NYSE: EMC) with a Buy rating and a price target of $31.00.
Analyst Kaushik Roy said, "EMC provides best-of-breed IT infrastructure solutions in four large and growing markets. EMC is evolving rapidly as technologies change. The company is executing very well and has grown faster than the markets in which it is participating by gaining market share. We believe EMC can grow its revenues faster than the overall growth rate of the Information Technology market. EMC has solid cash flow from operations. The company has a strong management and technical team. We believe that the stock is undervalued at these levels and the risk/reward for owning the stock is compelling."
Roy believes EMC is a good way to participate in four megatrends of technology - storage, virtualization, security, and analytics. He also believes EMC can evolve and remain one of the leading technology companies providing IT infrastructure, despite rapid changes in IT infrastructure technologies. In addition, positive margin trends are expected to continue and management may get creative.
"We believe EMC's CEO and Chairman Joe Tucci will most likely engineer some kind of structural change that may unlock the value of the EMC federation before he retires in 2015. EMC’s Information Infrastructure (II) business is grossly undervalued, in our opinion. EMC Corporation (the federation of EMC II, VMware, and Pivotal) is suffering from a "holding company" discount. Furthermore, we believe that EMC's Pivotal initiative is worth more than $5B, a value not fully reflected in EMC's stock today," he added.
For an analyst ratings summary and ratings history on EMC click here. For more ratings news on EMC click here.
Shares of EMC closed at $27.10 yesterday.
Analyst Kaushik Roy said, "EMC provides best-of-breed IT infrastructure solutions in four large and growing markets. EMC is evolving rapidly as technologies change. The company is executing very well and has grown faster than the markets in which it is participating by gaining market share. We believe EMC can grow its revenues faster than the overall growth rate of the Information Technology market. EMC has solid cash flow from operations. The company has a strong management and technical team. We believe that the stock is undervalued at these levels and the risk/reward for owning the stock is compelling."
Roy believes EMC is a good way to participate in four megatrends of technology - storage, virtualization, security, and analytics. He also believes EMC can evolve and remain one of the leading technology companies providing IT infrastructure, despite rapid changes in IT infrastructure technologies. In addition, positive margin trends are expected to continue and management may get creative.
"We believe EMC's CEO and Chairman Joe Tucci will most likely engineer some kind of structural change that may unlock the value of the EMC federation before he retires in 2015. EMC’s Information Infrastructure (II) business is grossly undervalued, in our opinion. EMC Corporation (the federation of EMC II, VMware, and Pivotal) is suffering from a "holding company" discount. Furthermore, we believe that EMC's Pivotal initiative is worth more than $5B, a value not fully reflected in EMC's stock today," he added.
For an analyst ratings summary and ratings history on EMC click here. For more ratings news on EMC click here.
Shares of EMC closed at $27.10 yesterday.
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