UBS (UBS) downgraded NetApp to "neutral" from "buy," saying "The outlook for storage spending continues to look mediocre as users pause and consider their alternatives. Although there still may be a storage upgrade cycle coming, we don't see it in our recent survey work and NetApp faces rising competition from start-ups as well as the cloud."
According to Seeking Alpha, EMC investors are concerned about the firm's commentary about NetApp.
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TheStreet Ratings team rates EMC CORP/MA as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate EMC CORP/MA (EMC) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, good cash flow from operations, solid stock price performance and increase in net income. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- EMC's revenue growth has slightly outpaced the industry average of 4.7%. Since the same quarter one year prior, revenues rose by 10.8%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- EMC CORP/MA has improved earnings per share by 23.1% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, EMC CORP/MA increased its bottom line by earning $1.33 versus $1.23 in the prior year. This year, the market expects an improvement in earnings ($1.95 versus $1.33).
- Net operating cash flow has increased to $2,190.00 million or 15.30% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -4.16%.
- The stock has risen over the past year as investors have generally rewarded the company for its earnings growth and other positive factors like the ones we have cited in this report. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that the other strengths this company displays justify these higher price levels.
- The net income growth from the same quarter one year ago has exceeded that of the Computers & Peripherals industry average, but is less than that of the S&P 500. The net income increased by 17.5% when compared to the same quarter one year prior, going from $869.92 million to $1,022.00 million.
- You can view the full analysis from the report here: EMC Ratings Report