Jefferies Starts EMC (EMC) at Buy, Isilon Acquisition another Pearl
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Price: $37.05 -0.16%
Rating Summary:
13 Buy, 25 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
13 Buy, 25 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Jefferies initiates coverage on EMC (NYSE: EMC) with a Buy. PT $33.00.
The firm comments, "We see EMC benefiting from a solid SSD line-up, a VMAX refresh (launched in May), and share gains in NAS due to Isilon. EMC hit a homerun with its VMware acquisition, and we believe Isilon will be another validation of its "string of pearls" acquisition strategy. Our checks indicate that Isilon has added new features that should enable it to jump from its current vertical concentration in Internet, video, and genomics (e.g., Avatar’s special effects were stored on a huge Isilon cluster) to broader enterprise adoption, especially for private clouds. But Isilon’s small relative size (only 6% of EMC’s hardware revenues, means that its growth will likely drive EMC’s multiple higher before it can significantly drive EMC’s EPS higher. Our 2013 EPS is 5% above consensus, and we initiate with a Buy and a $33 target."
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 $27.52 yesterday.
The firm comments, "We see EMC benefiting from a solid SSD line-up, a VMAX refresh (launched in May), and share gains in NAS due to Isilon. EMC hit a homerun with its VMware acquisition, and we believe Isilon will be another validation of its "string of pearls" acquisition strategy. Our checks indicate that Isilon has added new features that should enable it to jump from its current vertical concentration in Internet, video, and genomics (e.g., Avatar’s special effects were stored on a huge Isilon cluster) to broader enterprise adoption, especially for private clouds. But Isilon’s small relative size (only 6% of EMC’s hardware revenues, means that its growth will likely drive EMC’s multiple higher before it can significantly drive EMC’s EPS higher. Our 2013 EPS is 5% above consensus, and we initiate with a Buy and a $33 target."
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 $27.52 yesterday.
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