EMC's (EMC +1.8%) core Information Infrastructure ops (storage hardware/software, RSA) are "grossly undervalued" and chairman/CEO Joe Tucci will likely engineer a value-unlocking "structural change" before leaving in 2015, says Wunderlich's Kaushik Roy, while starting coverage at Buy.
Roy thinks EMC is suffering from a "holding company" discount, and pegs the value of EMC and subsidiary VMware's (VMW +0.2%) Pivotal spinoff at $5B+. He also declares the company to be "evolving rapidly as technologies change" (previous), and predicts it can outgrow the broader IT sector.
Separately, FBR's Daniel Ives has upped his VMware PT to $120 from $115, while stating checks have been "incrementally positive." Demand has been strong both from VMware's mainstay virtualization software, and for its software-defined data center initiatives.
Ives also believes a strong ELA renewal cycle is helping VMware out, and that a broadening product set should strengthen the company's efforts to re-accelerate growth.
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