For Immediate Release
Chicago, IL – May 14, 2012 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include EMC (EMC - Analyst Report), NetApp (NTAP - Analyst Report), Hewlett-Packard (HPQ - Analyst Report), IBM (IBM - Analyst Report) and Dell .
Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513
Here are highlights from Friday’s Analyst Blog:
EMC Set to Buy XtremIO
Confirming earlier rumors, EMC Corp. (EMC - Analyst Report) recently announced the acquisition of Israeli flash storage company XtremIO. Israeli business news web site Globes says that EMC is paying approximately $430.0 million. However, the company refused to confirm the payout, saying that the all-in-cash transaction would not have any material impact on its fiscal 2012 results.
Founded in 2009, XtremIO has operations in San Jose, California. The company received funding from a number of venture capitalists including Jerusalem Venture Partner, Giza Venture Capital, Battery Ventures and Lightspeed Ventures. Although the company is yet to record any storage revenue, its unique products have garnered significant attention in the flash storage market in recent times.
As the data explosion continues with higher adoption of cloud computing and big data, flash storage has been touted as the best solution to take care of the demand for higher speed and performance at the same cost as disk arrays. XtremIO specializes in developing all-Flash storage arrays, a much sought-after technology for traditional storage companies such as EMC and NetApp.
XtremIO’s flash storage arrays, instead of focusing on improving cache performance, acts as primary storage for applications requiring high speed, such as cloud computing and virtualization. This decreases fetching time, thereby increasing speed. Further, XtremIO’s flash arrays are built on low-cost MLC flash technology, which will make it more cost effective in our view.
EMC has a dominant position in the flash drive market, shipping approximately 24 petabytes (PB) of flash drive to customers in 2011. The acquisition is expected to boost EMC’s flash based storage product portfolio going forward. We believe that the acquisition will expand EMC’s customer base and market share, due to the higher demand from enterprises going forward.
Moreover, we believe that the acquisition will provide EMC a significant competitive edge in the storage market where it faces significant competition from NetApp (NTAP - Analyst Report), Hewlett-Packard (HPQ - Analyst Report), IBM Corp. (IBM - Analyst Report), Hitachi and Dell Inc. . However, we also believe that the low-cost flash array products can cannibalize sales of EMC’s VNX disk array product over the long term.
Thus, we remain Neutral over the long term (6-12 months). Currently, EMC has a Zacks #2 Rank, which implies a Buy rating in the near term.
Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=5515.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: http://at.zacks.com/?id=5517
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leon Zacks. As a PhD from MIT Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=5518.
Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Follow us on Twitter: http://twitter.com/zacksresearch
Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts
Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.
Zacks Investment Research
800-767-3771 ext. 9339