Collins Stewart Downgrading EMC Corp (EMC) to Hold
EMC Hot Sheet
Rating Summary:25 Buy, 3 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 16 | Down: 7 | New: 23
Collins Stewart downgrading EMC Corp (NYSE: EMC) from Buy to Hold.
Collins analyst says, "The financial services industry has been EMC's best friend for many years and while the company has a broad business, there is no doubt, in our mind, that EMC will see a significant drop in business from this critical sector of the market. As a result, the market for the company's Symmetrix products is likely going to be smaller than it has been for many years. In response, EMC has started discounting aggressively which should help them retain accounts but with significantly slimmer margins for several quarters to come. It is possible, but unlikely that EMC's service business will make up the difference. Like many companies right now, EMC is going to have to decide how to get by with less income. As the largest pure storage company, EMC has the highest overhead in the industry and if a widespread buying freeze should occur, the company would lose cash rapidly."
EMC Corporation (EMC) and its subsidiaries develops, delivers and supports the information technology (IT) industry's range of information infrastructure technologies and solutions.
Collins analyst says, "The financial services industry has been EMC's best friend for many years and while the company has a broad business, there is no doubt, in our mind, that EMC will see a significant drop in business from this critical sector of the market. As a result, the market for the company's Symmetrix products is likely going to be smaller than it has been for many years. In response, EMC has started discounting aggressively which should help them retain accounts but with significantly slimmer margins for several quarters to come. It is possible, but unlikely that EMC's service business will make up the difference. Like many companies right now, EMC is going to have to decide how to get by with less income. As the largest pure storage company, EMC has the highest overhead in the industry and if a widespread buying freeze should occur, the company would lose cash rapidly."
EMC Corporation (EMC) and its subsidiaries develops, delivers and supports the information technology (IT) industry's range of information infrastructure technologies and solutions.
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