Dear GV: I can not provide a link for the ML report that non-ML clients can access, but here are the summary comments from the report titled, "EMC To Go IP," written after a visit with EMC's management. Their 12 month target is $145:
Investment Highlights:
We are reiterating our rating on EMC. EMC
stock (+8%) has underperformed HP (+22%)
(HWP, B-2-1-7, $145 71/16) and Sun (+27%)
(SUNW, B-1-1-9, $97 1/8) year to date. We
maintain our $1.45 estimate though we have
remodeled the quarters. The March quarter
appears to be in good shape.
Our price objective of $145 is 76x our 2001
EPS estimate of $1.90. Our confidence is
increased based on our recent company visit.
Fundamental Highlights:
EMC will introduce Symmetrix support for
Internet Protocol (IP), perhaps leading to the
merging of NAS and SANs. This could blunt
the threat of NAS and boost storage demand.
EMC admits that vendor interoperability with
Fibre Channel will be hard to achieve. As a
result, SAN implementations are likely to be
proprietary, which favors EMC and its Fibre
Alliance in the near term.
We see EMC and NetApp as winners in an IP-based
storage world. Server vendors such as
IBM (IBM, B-2-1-7, $103), HP, and Sun may
struggle to catch up. Fibre Channel could be
relegated to a niche, whereas the consensus
expects it to be the dominant transport layer.
Regards,
Lynn |
