FBN Securities Sees Buying Opportunity In EMC

FBN Securities issued a research note on EMC Corporation (NYSE: EMC) Wednesday and saw the recent pullback as a buying opportunity.

The firm reiterated its Outperform rating and $33 price target.

Analyst Shebly Seyrafi noted that the pullback creates a buying opportunity because EMC is "starting a strong new high-end cycle with its VMAX" and the firm modeled "high-end storage growth of 4 percent Y/Y in FQ4" and saw upside potential.

"EMC has six businesses each with $1B+ annual revenue potential," according to Sayrafi and "EMC had a good month of September and it grew its storage revenue by 6 percent Y/Y (even without the full benefit of its new VMAX cycle)."

The report also noted that EMC has been performing well in international markets and will "be buying back $1.6B of stock in FQ4, 4x FQ3’s level," which added to the reasons for a buying opportunity.

The report mentioned that for the "FQ3 quarter, EMC reported revenue of $6.0B (+9 percent Y/Y and in line with consensus of $6.0B) and NG EPS of $.44 (below consensus of $.46)."

EMC Corporation recently traded at $27.48, up 1.03 percent.