Skip to main content

Market Overview

Argus Downgrades EMC: Here's Why

Share:
  • EMC Corporation (NYSE: EMC) shares have increased 13.7 percent in the past one month, reaching a high of $28.28 on October 12.
  • Argus’ Jim Kelleher has downgraded the rating on the company from Buy to Hold.
  • EMC Corp has entered into an agreement to be acquired by Dell, Inc. and its partners, and Kelleher believes that EMC shares would trade based on M&A speculations till the deal is closed.

According to the Argus report, “EMC shareholders are expected to receive total consideration of $33.15 per EMC share, including $24.05 in cash and 0.111 share of a tracking stock linked to EMC's economic interest in VMware, Inc. (NYSE: VMW).”

VMware will continue to be an independent, publicly traded company, while EMC Corp would be taken private, becoming a part of Dell.

“During a post-announcement conference call, executives of EMC, Dell and VMware stated that the potential for revenue synergies rather than cost synergies were driving the deal,” Kelleher reported.

Kelleher also mentioned that the CEO of EMC Corp, Joe Tucci, “amid unprecedented technology industry disruption, EMC's older products were tailing off more rapidly than earlier anticipated.”

Kelleher believes that this could have provided further incentive for this deal, which has come at a time when other top IT companies have been going through “shake-ups.”

Latest Ratings for EMC

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

View More Analyst Ratings for EMC
View the Latest Analyst Ratings

 

Related Articles (EMC + VMW)

View Comments and Join the Discussion!

Posted-In: Argus Research Company Jim Kelleher VetrAnalyst Color Downgrades Analyst Ratings

Latest Ratings

StockFirmActionPT
KRYSHC Wainwright & Co.Maintains103.0
OTRKRBC CapitalDowngrades32.0
EVHCanaccord GenuityMaintains24.0
BMRNCanaccord GenuityMaintains91.0
ONTFCanaccord GenuityInitiates Coverage On65.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
SPAC
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com