While both companies, EMC and Sun, are leaders...a slowdown in corporate information-technology spending can impact both companies' financial performance -- gravity is bound to take over. |
While the earnings-per-share outlook was inline with expectations, Network Appliance provided a positive revenue outlook for the fourth-quarter with IBM business just beginning to ramp. |
While the stock could remain under pressure near term, we maintain our 'buy' rating on IBM owing to a compelling second-half story. |
While we are very confident about the firm's underlying fundamentals ... Network Appliance's rich multiples require continued strong upside surprises and estimate increases, both of which are unlikely to happen near-term as the law of large numbers catches up with the company. |