CS First Boston Trims EMC Outlook

Analyst Amit Chopra thinks pricing pressure and higher utilization rates could hurt the company's hardware business

CS First Boston cut EMC Corp.'s (EMC ) estimates and price target.

Analyst Amit Chopra says the complicating downcast IT environment and other checks indicate that pricing pressure and increasing utilization rates continue to drag on EMC's hardware model -- reflecting concerns that he introduced in early May. Chopra cut the $0.74 2001 EPS estimate to $0.73, cut the $10.2 billion revenue estimate to $9.9 billion. He reduced the $0.91 2002 estimate to $0.85 and the $13 billion revenue estimate to $12.6 billion.

Chopra slashed the $75 target to $30, however, he expects the company will be responsive to pricing pressures over the coming quarters. He maintains his buy rating, and says as EMC's IP 4700 product continues to rack up share, the company remains a market leader.

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