[EMC] Stuff ...
Consumer and Enterprise Demand Driving Growth in Data Storage Companies, Says S&P Equity Research
Monday March 13, 2:50 pm ET
biz.yahoo.com
NEW YORK, March 13 /PRNewswire/ -- Standard & Poor's Equity Research Services cites corporations' need to access and manage their ever increasing volumes of proprietary data as well as the proliferation of consumer electronic devices as key growth drivers in the data storage sector in its new semi-annual survey on the computer storage industry. These and other findings are available in the report, Computers: Consumer: Storage & Peripherals Industry Survey, published twice yearly by Standard & Poor's, a leading provider of independent investment research.
ADVERTISEMENT
According to Standard & Poor's Equity Research Services, data storage companies have benefited from corporations' response to heightened regulatory scrutiny associated with email retention and record keeping, the continuing build-out of networked storage configurations and more robust user applications. Data storage companies have also benefited from the growth in consumer electronics, specifically digital music players, laptop computers and video recording devices that require significant storage capabilities.
"We believe both consumers and corporations will have increased data storage needs as the digital world continues to take root. Whether it's portable media players or devices that can archive years worth of emails, data storage hardware has become an essential part of everyday life," says Richard Stice, CFA, Data Storage Analyst with Standard & Poor's Equity Research Services. "As a result, we have favorable recommendations on a number of companies in this area."
Standard & Poor's Equity Research Services has a "Strong Buy" (5-STARS out of 5) recommendation on EMC Corp. (NYSE: EMC, $14) because of an expanding product portfolio, improving operating model and consistent free cash flow generation. In addition, Standard & Poor's Equity Research Services has a "Buy" (4-STARS) recommendation on QLogic Corp. (Nasdaq: QLGC, $20) because of its leading market share position and favorable capital structure, with close to $9 a share in cash and no long-term debt.
"We see future growth being driven by the ongoing creation of digitized content, which should result in additional corporate allocations toward various storage initiatives," continued Stice. "Moreover, updated product offerings incorporating new technologies are also likely to stimulate demand."
To view a video clip of Standard & Poor's equity analyst Richard Stice, CFA, discussing the sector, please go to mms://wmd31sea.activate.net/sandp/windows/sptv-survey-20.wmv.
Standard & Poor's Industry Surveys provide a broad and fundamental overview of each industry's structure, its recent performance, and an analysis of trends that are expected to influence it in the future. Each Survey is organized into the following sections: Current Environment, Industry Profile/Industry Trends, How the Industry Operates, Key Industry Ratios and Statistics, How to Analyze a Company, Industry References, Comparative Company Analysis, and a Glossary of terms used in that industry. Both text and data are provided, as are references to additional sources of industry information. Two surveys on each industry are published each year.
Readers can purchase Standard & Poor's Industry Surveys three ways:
Online for immediate download at sandp.ecnext.com, by telephone at 212-438-4052, or via e-mail order sent to bill_kelleher@standardandpoors.com. Members of the media can request a copy from the communications contact listed at the end of this release.
The analyst quoted above is a Standard & Poor's equity analyst. He has no affiliation with any company he covers, nor any ownership interest in any company he covers.
About Standard & Poor's Equity Research Services
As the world's largest producer of independent equity research, over 1,000 institutions license Standard & Poor's research for their investors and advisors, including 19 of the top 20 securities firms, 13 of the top 20 banks, and 11 of the top 20 life insurance companies. Standard & Poor's team of 100 experienced U.S., European and Asian equity analysts use a fundamental, bottom-up approach to assess a global universe of approximately 2,000 equities across more than 120 industries worldwide. Follow Standard & Poor's equity analysts' U.S. market commentary each day at equityresearch.standardandpoors.com.
The equity research reports and recommendations provided by Standard & Poor's Equity Research Services are performed separately from any other analytic activity of Standard & Poor's. Standard & Poor's Equity Research Services has no access to non- public information received by other units of Standard & Poor's. Standard & Poor's does not trade on its own account. The analytical and ethical conduct of Standard & Poor's equity analysts is governed by the firm's Research Objectivity Policy, a copy of which may also be found at standardandpoors.com.
About Standard & Poor's
Standard & Poor's, a division of The McGraw-Hill Companies (NYSE: MHP - News), is the world's foremost provider of independent credit ratings, indices, risk evaluation, investment research, data and valuations. With approximately 6,300 employees located in 20 countries and markets, Standard & Poor's is an essential part of the world's financial infrastructure and has played a leading role for more than 140 years in providing investors with the independent benchmarks they need to feel more confident about their investment and financial decisions. For more information, visit standardandpoors.com.
--------------------------------------------------------------------------------
Source: Standard & Poor's |
