Will This Price Target Increase Help EMC (EMC) Stock Today?

Story updated at 9:55 a.m. to reflect market activity.

NEW YORK (TheStreet) -- BMO Capital markets raised its price target for EMC (EMC) to $32 from $29 Thursday, reiterating its "outperform" rating for the stock.

EMC fell -0.1% to $28.74 in morning trading.

The analyst firm also raised its EPS estimates for the company through 2015. BMO analysts Keith Backman and Jung Pak cited EMCs higher sales and plans to buy back more stock as reasons for the higher numbers.

"We suspect EMC's announced increase of buybacks from $2 billion to $3 billion in 2014 is an opening move, not an end move," the analysts wrote. "With around $9 billion in net cash (including VMW's cash) and around $6 billion in FCF generating capability, we believe that EMC could take on more debt and meaningfully reduce its share count, in the absence of spinning or selling VMW."

Must read: Warren Buffett's 25 Favorite Stocks

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.


Separately, TheStreet Ratings team rates EMC CORP/MA as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:

"We rate EMC CORP/MA (EMC) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, expanding profit margins, increase in stock price during the past year and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income."

If you liked this article you might like

Here the One Business That Could Fit 'Perfectly' Inside Meg Whitman's Overhauled Hewlett Packard

HP Enterprise Could Use an Expected Software Windfall to Make Hardware Acquisitions

7 Stocks Trading on Big Volume -- and What to Do With Them Now

EMC Stock Higher, Dell's $63 Billion Deal Closing Next Week

John Paulson Bought These 5 Stocks -- but the Charts Say Sell