J.P. Morgan Initiates Coverage On Enterprise Storage Sector and EMC

Business Wire, Nov 11, 1999

SAN FRANCISCO--(BUSINESS WIRE)--Nov. 11, 1999--

J.P. Morgan Securities Inc. Computer Systems equity research analyst, Daniel Kunstler, initiated coverage of EMC Corporation (NYSE: EMC). today with a "Buy" rating and a target price of $95. He also initiated coverage of the Enterprise Storage sector with a 25-page industry report.

In his 36-page company report titled EMC Corporation - Speak Loudly and Carry a Big Stick, Kunstler asks, "What could be better than being, by far, the best-of-breed pure play in the sweet spot of a rapidly growing market?" In his accompanying industry report, Enterprise Storage: More, More, More!, Kunstler writes, "Times are good; and the storage market is positively voracious." He states that "enterprise storage capacity shipments will probably double each year for the next three, fueled by a potion of better technology, internet traffic, multimedia, and new applications that breed gobs of data."

"Go to any ".com" company, or even any ".com" initiative within an established corporation or institution, and what are you likely to find", asks Kunstler. "A harmonic trio composed of Sun servers, Cisco data communications gear, and EMC storage. They are the plow, the horse, and the harness tilling the Internet field."

EMC is the number one provider of high-end, high-performance enterprise storage systems for mission-critical settings. EMC's service thrust is a distinctive feature of its business model and a potent competitive advantage. EMC's software offering is part and parcel of the concept of networked enterprise storage, and EMC has been tuning its storage software for the past 10 years.

J.P. Morgan is a global financial firm with a growing technology, media, and telecom investment banking and equities practice. The firm has over 154 professionals worldwide dedicated to this business, and in the United States, has teams in San Francisco, New York, and Los Angeles.