Market Overview

Pacific Crest Downgrades EMC With Seasonal, Secular And Competitive Risks Cited


In a report published Thursday, Pacific Crest analyst Brent Bracelin downgraded shares of EMC Corporation (NYSE: EMC) to Sector Perform from Outperform with no established price target (but a fair-value range of $24 to $28) due to increasing seasonal, secular and competitive risks.

According to Bracelin's North American field checks, enterprise demand for storage appears to be below typical March seasonality and sales representatives are "scrambling" to close deals. The analyst continued that seasonal weak enterprise hardware demand in the U.S. could "exacerbate" the ongoing currency impact tied to international sales.

The analyst's downgrade is also tied to the company's "new appetite to consolidate" which holds the potential to elevate near-term execution risks. In addition, the company faces margin risk as pricing is turning more aggressive and secular shifts in technology could be accelerating faster than the company's ability to transform and diversify beyond storage.

Latest Ratings for EMC

Sep 2016Brean CapitalTerminatesBuy
Aug 2016Deutsche BankMaintainsHold
Jul 2016BernsteinDowngradesOutperformMarket Perform

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Posted-In: Brent Bracelin emc Enterprise Hardware Pacific CrestAnalyst Color Downgrades Analyst Ratings

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