Oppenheimer analyst upgrades EMC, sees strong demand for data storage

Ahead of the Bell: EMC upgraded

NEW YORK — An Oppenheimer analyst has upgraded EMC Corp., saying the data storage specialist is set to deliver strong second-quarter results and has good momentum going into the third quarter.

Ittai Kidron, who raised his rating to “Outperform” from “Perform,” said he thinks EMC’s broad product portfolio and scale will help it deliver “solid growth” and better withstand another potential economic slowdown.

“Storage remains a top (technology) spending priority, and we believe EMC is well positioned in this area,” Kidron wrote in a note to investors Tuesday. He set a target price of $22.

Separately, EMC said Tuesday it plans to buy data analysis startup Greenplum Inc. for an undisclosed sum, in an effort to lower the cost of analyzing companies’ digital information. Baird analyst Jason Noland said he does not expect the deal to have a “material impact” on EMC. He added he thinks EMC is in a good position to take advantage of improving demand environment.