Replies to post #238899 on Option Millionaires

[nlightn]

$EMC,...FBN downgrades EMC, reports weak storage checks

"We are rather surprised by the uniformity of negative data points about storage spending in CQ1," writes FBN's Shebly Seyrafi, downgrading EMC (EMC -0.9%) to Sector Perform and cutting his target by $3 to $27.

"Reasons provided include the usual 'movement to the cloud' and technologies such as data deduplication and compression hurting storage bit demand growth, but we are also hearing that IT managers are reallocating storage dollars toward security (which our checks note is a very attractive market currently)."

Seyrafi also thinks forex's 2015 impact on EMC will be worse than implied by the company's January guidance, which he considers too aggressive, and that competitive pressures from upstarts such as Pure Storage (reportedly planning an IPO) and Nimble Storage are mounting.