Citi and Bear Streans both upgraded EMC (EMC) on the strength of its ownership in VMware (VMW) and its own growing storage business.
According to MarketWatch, Citi which upped the stock from hold to buy, said "the mid- to long-term demand generation for networked storage attributable to server virtualization (is) attractive". Bear Streans upped EMC’s rating to outperform from peer perform, said the firm has been "highly effective at finding the ‘next big thing’ in IT spending, and then growing those nascent businesses through its legendary sales and marketing prowess, enabling overall EMC to continue to grow."
VMware is one of the most successful IPOs of the last year. Its shares have moved from just over $51 to almost $80 in less than three months. EMC owns 87% of the company.
Douglas A. McIntyre