Brean Murray Reiterates Buy Rating, $32 PT on EMC Corporation
In a report published Wednesday, Brean Murray, Carret & Co. reiterated its Buy rating and $32.00 price target on EMC Corporation (NYSE: EMC).
Brean Murray noted, “EMC continues to be our top pick heading into 2H12 on the back of product cycles, share gains, and attractive growth. Aside from reiterating CY12 revenue and EPS guidance of $22B and $1.70, we believe opportunity for EPS upside remains (GM driven) should industry pricing pressure not get materially strong. EMC generated Jun Q GM of 64.4% (vs. our expectation of 62.1%) due to ramp of new high‐end VMAX hardware and increasing software attach – however, in anticipation of a more aggressive 2H12 ASP environment given macro, EMC is baking in softer 2H12 GM – IF ASP pressure doesn't materialize, we could see EMC generating up to $0.04 in CY12 EPS upside.”
EMC Corporation closed on Tuesday at $25.34.
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