S&P REITERATES STRONG BUY OPINION ON SHARES OF EMC CORP.
EMC benefits from growth in the software-as-a-service market. The company boosts its position as an IT infrastructure provider by partnering with Verizon (VZ) to deliver such capabilities on its newly announced Fortress platform. Market research firm IDC forecasts software-as-a-service market will grow at a 35% annual rate until 2011. Large IT vendors see competitive advantages as users gain flexibility in deploying applications, eliminating software on individual machines, with a pay-as-you-go model. We keep our blended discounted cash-flow (DCF)- and P/E-based 12-month target price at $24. /J. Hingorani