EMC Downgraded To Perform

Oppenheimer has published a research report on EMC Corporation EMC as an upside for the company's earnings has become increasingly more difficult to identify, causing Oppenheimer to downgrade EMC to Perform. In the report, Oppenheimer writes "We're downgrading EMC to Perform from Outperform and removing our $22 PT. While we're not calling the top on EMC and remain constructive on EMC's favorable near-term storage fundamentals, we're opting to take a more cautious stance heading into 2011. We're concerned EMC could provide an uninspiring initial view on 2011 given tougher YoY revenue growth comps, a likely end to catch-up spending, and reduced VMware growth and Data Domain contribution. Furthermore, we see limited margin upside due to rising competition and reduced VMware mix impact, resulting in less room for upward revisions. With valuation less appealing at current levels, we're downgrading EMC to Perform." Oppenheimer has removed the $22 price target for EMC Corporation, which closed yesterday at $21.36.