EMC Corp: Oppenheimer’s Channel Checks Highlight Competitive Challenges

In a research report published Tuesday, Oppenheimer analyst Ittai Kidron reiterated an Outperform rating on EMC Corp (NYSE:EMC) with a price target of $30, which implies an upside of 14% from current levels.

Kidron wrote, “We come away from our channel checks mindful of competitive challenges that could again cap EMC’s near-term performance. Our product checks were ok including improvement for VNX and VMAX, but there were signs that the competitive landscape remains tough, pressuring EMC’s win rates and weighing on pricing. Our overal view suggests some downside risk to 2Q15 sales estimates/margins, and we remain comfortable with our below-Street view for 2015.”

Furthermore, “We expect management to stick to an aggressive 4Q15 ramp, and we still see long-term positives (emerging products growth, steady product execution, cash returns, potential for cost cuts). Thus, we remain engaged though cautious near term ahead of results.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Ittai Kidron has a total average return of 1.1% and a 47.7% success rate. Kidron has an 0.6% average return when recommending EMC, and is ranked #1673 out of 3691 analysts.

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