EMC Corporation (NYSE:EMC) – Bounce possible from $24.00-$25.00

EMC Corporation (NYSE:EMC) ended the week with an absolutely flat session, gaining 0.24% by the closing of the trading session. Last week, the analysts of Oppenheimer decreased the target to $30 from the earlier $33 though the “outperformer” rating was kept unchanged. The analysts raised doubts over the possible weak spots in Europe. Product specific checks or qualitative comments have not been very encouraging too. The 1st quarter result of 2015 may come even below the consensus of $5.78 billion, which would mean a decline of 18% on a quarterly comparative basis.

Read what this analyst has to say about the fundamentals of EMC.

The channels have not managed to retain the same bullishness as in 2014 though the execution looks well but the product transitions, macro caution along with competitive pressure may have taken a toll on the company’s portfolio, goes the perception. The company can reduce its 2015 guidance later to remain on the conservative side as a small sales/margin risk still exists, which is related to the price pressure, the pace of spending and foreign exchange.


EMC Corporation (NYSE:EMC) has also been hurt by a number of defections in the recent times but now the company is fighting back. It has sued James Petter, ex-senior vice president who has joined one of the chief competitors Pure Storage, to get back the company stock previously granted. The company takes the departure of its top talents as a part of planned poaching by Pure Storage to obtain proprietary information.

In the last two weeks, EMC Corporation (NYSE:EMC) was downgraded to “neutral” by Piper and to “sector perform” by Pac Crest. On the other hand, the technical charts show an immediate support at $25, failing which the major long term support just below $24 comes into the picture. The declining volume in the last few months signals more impending volatility, but a breach of the $24 levels looks unlikely.

Brown Terrel

Brown Terrel

Terrel is US Markets Daily's business news reporter. She joined US Markets Daily after five years as a print reporter.