Investors Likely to Focus on VMW Deal as EMC Corp. (EMC) Reports In-Line 3Q Results; Mizuho Securities Remains Neutral
Mizuho Securities reiterated a Neutral rating on EMC (NYSE: EMC), and cut the price target to $30.00 (from $31.00), following the company's 3Q15 earnings results. Analyst Abhey Lamba said that fundamentals are unlikely to matter much at this point. Instead, investors are focused on the deal dynamics caused by potential disruption at VMware (NASDAQ: VMW). EMC reported total revenues of $6.08bn vs consensus of $6.25bn.
Lamba commented, "We reiterate our Neutral rating but reduce our price target to $30 on EMC. 3Q15 results posted in-line with the preannouncement. EMC continues to track the secular decline in the storage market, however, delivered gross and operating margin stability in the quarter on expense management initiatives. In light of the merger with Dell and uncertainty around VMware's operating performance, we don't think fundamentals will matter to investors. Based on terms of Dell's offer of $24.05 in cash and VMware tracking stock per share, we value EMC at $30."
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 $27.49 yesterday.