“Within tech, we think that prospects of a potential bottoming in consensus estimates are improving…[and] relative safe haven stocks could be used as a source of funds,” wrote JPMorgan Chase analyst Mark Moskowitz in a research note seen by Forbes.
As the publication reported, Moskowitz updated his ratings on several key technology stocks on Monday based on that reasoning, and despite the “muted growth outlook” in technology, he urged investors to back away from safer havens in favor of riskier companies.
EMC (NYSE:EMC): Current Price $24.22
Moskowitz downgraded the stock from Overweight to Neutral and decreased his price target on the company’s shares from $29 to $26. His reasoning for the lower rating was based on his fear that EMC’s midrange market share momentum was easing and the possibility that increased competition from Oracle (NASDAQ:ORCL) in the high-end storage arena could prevent the company from having “above-peer growth potential.”
Shares of EMC were also downgraded last Friday to Equal-weight from Overweight by Morgan Stanley analyst Katy Hubert. In a research note seen by Barron’s, she wrote that while the fourth quarter “turned out to be challenging for hardware in general, our channel checks suggest storage experienced the largest negative change on the margin.”