NEW YORK (TheStreet) -- EMC (EMC) stock rating was reduced to "market perform" from "outperform" at Raymond James on Monday morning, as the Hopkinton, MA-based company expects to close a deal with Dell.
The merger is likely to gain shareholder vote and regulatory approval by tomorrow, Barron's reports. EMC will also report 2016 second quarter results after closing bell today.
"We believe there could be risk to 2Q estimates given the negative commentary from our 2Q IT Survey, the lack of guidance post-merger announcement and consensus estimates for Information Storage, which imply above normal seasonal trends," the firm added in an analyst note.
Additionally, Raymond James analysts believe that EMC's strength is waning compared to peers such as Mountain View, CA-based data storage company Pure Storage (PSTG).
Shares of EMC are up by 0.36% to $27.65 in late morning trading on Monday.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
We rate EMC CORP/MA as a Hold with a ratings score of C+. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its increase in net income, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity and weak operating cash flow.
You can view the full analysis from the report here: EMC