Salomon Cuts Brocade, EMC and InRange
Salomon Smith Barney downgraded Brocade (BRCD ), EMC (EMC ) and InRange Tech (INRG ) to outperform from buy.
Analysts Clinton Vaughan and John Dean say while they continue to believe in the longer-term appeal of storage industry, they see the storage sector as a relative outperformer and also continue to feel that storage stocks and fundamentals will be under pressure in the near term. Although they recognize that much of the downside risk is reflected in current prices, they cannot ignore the looming fundamental erosion that has been caused by an economic downturn. They note these companies continue to execute well, their rating adjustments are based on macroeconomic weakness and nothing company-specific.