Goldman Sachs Said EMC's Results Prove IT Spending Is Stabilizing, Positive For Software (MSFT, SYMC)

Goldman Sachs said EMC's (NYSE: EMC) 2Q upside, resumption of providing full-year guidance, and tone and comments from the conference calls are incremental signs that IT spending environment is beginning to stabilize, which is consistent with their view.

EMC's news is supportive of their positive view on software for the 2nd-half of '09. The firm's investment stance in software has shifted more offensive with a bias toward growth exposure.

The firm's favorites in the group include Conviction Buy List rated Microsoft (Nasdaq: MSFT) and Symantec (Nasdaq: SYMC) and Buy rated Oracle (Nasdaq: ORCL), BMC (NYSE: BMC), Citrix (Nasdaq: CTXS), Quest Software (Nasdaq: QSFT), SolarWinds (NYSE: SWI) and SuccessFactors (Nasdaq: SFSF). Salesforce.com (Nasdaq: CRM) and Akamai (Nasdaq: AKAM) rated Sell.

The firm maintained their Neutral rating on EMC, but raised their price target to $16 from $13.50.

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