Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : EMC How high can it go? -- Ignore unavailable to you. Want to Upgrade?

To: TigerPaw who wrote (12611)	4/20/2001 3:36:16 PM
From: jhg_in_kc	Read Replies (1) \| Respond to of 17183

we already at 45! Storage stocks rise with long-term industry optimism LOS ANGELES, April 20 (Reuters) - Shares of technology storage companies were stronger on Friday, after top players reported earnings that met lowered expectations and hinted at a pick-up in demand for their products. "I think the real overriding theme is the fact that especially with EMC there's a little bit of visibility now," said Bill O'Hearn senior portfolio manager with Valentine Capital in San Francisco. "They (EMC) came out and said they're starting to see a little demand pick up." On Thursday EMC Corp. (NYSE:EMC) and Emulex Corp. (NASDAQ:EMLX) posted earnings that met lowered expectations. Despite warnings of weaker future earnings by Emulex and Brocade Communications Systems Inc. (NASDAQ:BRCD), analysts upgraded Brocade and EMC and share values rose. Shares of EMC were up 1.6 percent or 67 cents to $43.48 on the New York Stock Exchange. Brocade and Emulex were up on the Nasdaq, rising 11.7 percent or $3.67 to $35.01 and 5.5 percent or $1.71 to $32.58, respectively. Network Appliance Inc. (NASDAQ:NTAP) gained 3.5 percent or 79 cents to $23.09. Brocade said it expected net revenues to fall about 30 percent for its fiscal second quarter compared to the prior quarter, citing the weaker U.S. economy. EMC is the No. 1 maker of dedicated storage networks, which sit alongside traditional computer networks. Network Appliance makes stand-alone storage devices that integrate with normal computer networks. Brocade and Emulex make software and switches that tie computer data storage networks together. Solomon Smith Barney upgraded its rating on Brocade to a buy from outperform, citing potential growth in the industry. Analyst Clinton Vaughan raised his price target on the company to $45 from $36. Banc of America Securities upgraded EMC to a buy rating from market performer, and said EMC could trade to the $50 range. "We believe that EMC is positioned to remain the dominant provider of storage infrastructure and a core holding for next-generation Internet infrastructure names, with solid long-term prospects and competitive position," the brokerage wrote in a report. Bear Stearns analyst Andy Neff noted in a report that EMC was a good play if market conditions improve. "If there is a positive shift in the current macroeconomic demand conditions, EMC is the stock to be invested in and there is room for upside to our price target of $45," he wrote.