EMC and NetApp Enjoy Fruits of Market Predictions

January 9, 2007: Shares jumped in both EMC and Network Appliance after analysts upgraded recommendations from ‘neutral’ to ‘buy,’ citing the growth of content and strong demands for storage infrastructure as contributing to market success.

Despite announcements of employee cuts and a flurry of acquisition activity, market analysts UBS Securities, are advising clients to buy up bit in EMC Corp as the growth of content data continues.

As a result, shares have already risen 56 cents to $12.17 on the New York Stock Exchange. UBS analyst Benjamin Reitzes was responsible for the upgraded recommendation as he set his target for EMC shares to reach $16.

“It is poised to benefit from solid storage demand as well as an ongoing mix shift to higher-margin software,” Reitzes wrote in his note to investors this week. “With software increasing as a percentage of total sales, and benefits from restructuring, EMC is well positions for margin expansion and mid-teens organic growth.”

Analysts have also upgraded shares in Network Appliance to ‘buy’ as the vendor again looks poised to benefit from growth in need for storage related products. With UBS market predictions on hand, shares rose in the EMC rival Network Appliance by $1.20 to $40.27.

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