Needham & Company Maintains a 'Buy' on EMC (EMC); Slight 3Q Beat on Strong Execution; Tweaking Estimates

Needham & Company maintains a 'Buy' on EMC (NYSE: EMC) price target cut $1 to $32.00.

Needham analyst says, "Mgmt reiterated 2011 guidance of NG EPS >$1.48 on >$19.8B and expects a good budget flush in 4Q and no supply constraint from Thailand flooding, but uncertainty/customer scrutiny will lead to 4Q q/q growth slightly less than normal 12-15%. EMC still expects IT spending growth to be at higher end of 5-7% this year, but provided the following 2012 comment: 1) IT spending will grow, but at slower rate than 2011; 2) Cloud, Big Data, and Security will remain top priorities; and 3) EMC will grow significantly faster than market."

"EMC remains focused on taking share, key opportunities in datacenter transformation to private clouds, working with service providers building public clouds, leveraging new products and VMW...Tweaking our 4Q EPS to $0.47 on $5.45B vs. $0.48 on $5.58B and ’12 EPS $1.73 (unchanged) on $21.9B (10% y/y growth) vs. $22.4B (12% y/y)."

For more ratings news on EMC click here and for the rating history of EMC click here.

Shares of EMC closed at $23.99 yesterday.

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