Wunderlich analyst Kaushik Roy points to increased market share and presence in each of the top four tech "megatrends" -- storage, virtualization, security, and analytics -- as evidence that the stock has been undervalued.
"The company has a strong management and technical team," wrote Roy in a note to clients. "We believe that the stock is undervalued at these levels and the risk/reward for owning the stock is compelling."
Industry analyst expect cloud computing to become a driving force in IT as more smartphones, tablets and laptops enter the cloud. The hybrid cloud market is expected to reach $79.54 billion by 2018.
EMC was up 1% to $27.37 in morning trading.
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, increase in net income, good cash flow from operations and expanding profit margins. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results."