Market Overview

Deutsche Bank Initiates Coverage on IT Hardware

Share:
Related AAPL
Bob Seger Finally Joined The Streaming World: Here Are 8 Music Icons Still Holding Out
Saving The Uber Kalanick Built
Warren Buffett's 5 Highest-Quality Companies (GuruFocus)
Related EMC
NetApp's Recent Momentum Should Continue; JMP Upgrades
Cognizant Shares Rally Amid Activist Letter; How Is Elliott's Track Record?

On Thursday, Deutsche Bank initiated coverage of the IT Hardware sector.

Analyst Sherri Scribner noted IT budgets have been under pressure and said, “software remains a key area of growth, while hardware and services revenue are growing slower.

The analyst feels Apple (NASDAQ: AAPL), EMC (NYSE: EMC) and Hewlett-Packard (NYSE: HPQ) are “best positioned to benefit from the next-generation of IT which includes cloud, Big Data, converged infrastructure and mobility.” The stocks were initiated with Buy ratings.

Scribner expects server revenue to grow by “a modest 1-2%” over the next few years, which would be a continuation of decreasing server growth the past two years.

The storage market is next to be experience slow growth as “software defined storage adoption begins to take off.”

Cloud, which accounted for all of the growth in enterprise IT hardware sales in 2013, “remains small.” Scribner views cloud “as a positive for hardware vendors due to its growth, but a negative for margins.”

The analyst also initiated coverage on International Business Machines (NYSE: IBM) and NetApp (NASDAQ: NTAP) with Neutral ratings.

Latest Ratings for AAPL

DateFirmActionFromTo
Jun 2017MizuhoDowngradesBuyNeutral
Jun 2017Pacific CrestDowngradesOverweightSector Weight
Apr 2017Morgan StanleyMaintainsOverweightOverweight

View More Analyst Ratings for AAPL
View the Latest Analyst Ratings

Posted-In: Deutsche Bank Sherri ScribnerAnalyst Color Price Target Initiation Analyst Ratings

 

Related Articles (AAPL + EMC)

View Comments and Join the Discussion!