“Our bullish thesis on EMC’s shares remains intact, though we have higher conviction in the absolute upside potential for the shares,” he writes in a research note. “We believe networked storage will continue to enjoy secular tailwinds throughout 2011, and we believe EMC is well positioned to capture the lion’s share of this market’s growth. In addition, we believe EMC’s leading portfolio of next-generation enterprise technology assets will allow it to generate sustainable growth and build an increasingly software-centric earnings profile.”
For 2011, Shope raises his forecast to $19.71 billion in revenue and profits of $1.54 a share, up from $19.61 billion and $1.50, and ahead of the consensus at $19.64 billion and $1.48.
For 2012, his profit forecast goes to $1.74, from $1.70; for 2013, he now sees $1.98, up from $1.91.
He adds that “increasing uncertainty in the PC and consumer technology segments will move many investors towards the leaders in enterprise technology.”
EMC this morning is up $1.05, or 4.1%, to $26.68.
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