It's about time to join Cupid in the clouds. Data-storage provider EMC, which celebrated its best performance in history last year, expects to boost revenues by 65% to $28 billion by 2014, largely due to cloud computing, the trendy technology that aims to help businesses save money by accessing servers and storage over the Internet.
Most of EMC's exposure to cloud computing comes from its majority stake in virtualization software maker VMware Inc. (VMW), but even without it, EMC's is poised for strong growth, said Uri Landesman, president of New York-based hedge fund Platinum Partners, which owns shares of the company.
"EMC has a lot going on, and there's a lot more excitement ahead," said Landesman, who is bullish on EMC's new product cycle and its core storage business, which he said trades for less than 12 times earnings estimates.
At an analyst event earlier this month, EMC chief financial officer David Goulden said the company's storage business is likely to enjoy a 6% to 7% annual uptick in technology spending for the next several years.
Shares of EMC have rallied 18% to about $27 per share, and Goldman Sachs analyst Bill Shope expects the stock to rise another 15% to $31 this year.
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