SAN FRANCISCO (MarketWatch) -- EMC (EMC) and NetApp (NTAP) were downgraded to equal-weight, or neutral, ratings by Barclays Capital on Tuesday morning. In a note to clients, analyst Ben Reitzes noted that both vendors of high-end corporate data-storage solutions are approaching his price targets. "With new products and capital return announcements largely behind both companies, we see fewer incremental catalysts over the next several quarters to warrant significant multiple expansion beyond current levels," he wrote. He added that he still expects "sequential growth" for both firms in the second half of the year, allowing for pent-up demand after a weaker first half. "Given our view regarding long-term headwinds to storage demand, we believe there may be more upside in networking names today," he wrote. EMC was last trading down 1.4% to $25.88, while NetApp was off by a fraction to $43.09.
-Dan Gallagher; 415-439-6400; AskNewswires@dowjones.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
09-24-13 1218ETCopyright (c) 2013 Dow Jones & Company, Inc.
|UPDATE: EMC, NetApp downgraded to neutral by Barclays (2013/9/24)|
|NetApp to Participate in the Barclays Software Defined Data Center Forum on November 14, 2013 (2013/11/11)|
|UPDATE: IBM downgraded to neutral at UBS following miss (2013/10/17)|
|IBM downgraded to neutral at UBS following miss (2013/10/17)|
|UPDATE: Broadcom downgraded to neutral by Wedbush (2013/10/23)|
|Broadcom downgraded to neutral by Wedbush (2013/10/23)|
|Foot Locker downgraded to neutral by Goldman Sachs ()|
|Start Premium Trial||Register For Free|
|P||F||Fund Financial Data (13,000+ funds)|
|P||F||Stock Financial Data (7,000+ stocks)|
|P||F||Stock and Fund Screeners (basic)|
|P||F||Investing Articles and Market Commentary|
|P||F||Articles Archive (>30 days)|
|P||F||Discuss (dozens of stock, fund, bond, and general bulletin boards)|
|P||F||Portfolio Manager (basic)|
|P||F||Morningstar Investment Classroom|
|P||F||Access Your Portfolio Anytime, Anywhere via Your Mobile Device|
|P||Morningstar Fund Analyst Reports (full research on 1,700 funds, ETFs, and CEFs)|
|P||Morningstar Stock Analyst Reports (full research on more than 1,100 stocks)|
|P||Portfolio Manager (advanced with 10 X-Ray analyses, including recommendations)|
|P||Portfolio Monitor (monthly and on-demand personalized portfolio statements)|
|P||Morningstar Proprietary Stock Information (stock star ratings, buy/sell prices, economic moat ratings, and more)|
|P||Morningstar 5-Star Stock and Fund Favorites & Red Flags eNewsletters|
|P||Premium Stock and Fund Screeners (advanced with nearly infinite ways to find the best securities for you)|
|P||Discounts on Morningstar newsletters, books, seminars, and more|
Access these features and more when you sign up for Free Membership.
Join Morningstar today. It's Free.
Access these features and more when you sign up for Premium Membership.
Start your free 14-day trial today online
Your subscription may be tax deductible. Please contact your tax advisor.