UPDATE: Stifel Nicolaus Raises PT to $36 on EMC Corporation
Stifel Nicolaus increases its price target from $33 to $36 on Buy-rated EMC Corporation (NYSE: EMC) as it expects a solid start to 2012.
Stifel Nicolaus comments, "With our end-of-quarter checks once again highlighting EMC's strong execution and an as-expected 1Q12 close, we are increasing our estimates to reflect a more seasonally typical March quarter. With a favorable margin mix shift continuing to play out, we also increase our gross margin estimate by 60bps to 61.2%, or rather reflecting a more seasonal March quarter trend (i.e., -150-200bps seq.). Given our ongoing particularly positive checks on Isilon and Data Domain, we see our GM% estimate as continuing to offer the most potential upside to estimates (note: EMC is moving Data Domain solutions to its own back-end systems vs. prior use of Xyratex)."
EMC closed at $28.44 on Friday.
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