Goldman Resumes Coverage On EMC At Buy

Goldman Sachs has published a research report on EMC Corporation (NYSE: EMC) and has resumed coverage with a Buy rating.

In the report, Goldman writes "We see several catalysts in 2011 that are likely to drive the stock higher. First, we expect the fourth-quarter earnings release in January to highlight our view that secular tailwinds will continue to propel storage growth beyond the cyclical refresh of 2010, and we are above consensus for the quarter. Second, we believe server virtualization's momentum and advanced use cases for the technology will become increasingly apparent throughout the next calendar year, particularly as VMware's growth decouples from server industry trends. Finally, we expect EMC's margins to continue to expand throughout 2011, highlighting the inherent leverage in EMC's increasingly software-centric business model."

Goldman has also issued a $27 price target on EMC Corporation, which closed Friday at $22.25.