EMC (NYSE:EMC) Says Revenue Will Reach $28 Billion by 2014

At its recent analyst day, EMC Corporation (NYSE:EMC) said they see revenue jumping to $28 billion by 2014.

To accomplish the approximate 13 percent annual growth rate through 2014, EMC said they believe they'll gain market share and target higher growth market segments.

Wedbush says, "EMC expects to gain market share and focus on higher growth market segments such as: i) Scale-out network-attached storage (NAS); ii) low-end storage; and (iii) converged infrastructure, where EMC does not have much presence today.

"The company should continue to have earnings-per-share leverage and grow EPS faster than the revenue guidance of 13% CAGR (2010-2014). VMware (VMW) [majority-owned by EMC] (roughly 17% of EMC revenue in 2010), will continue to invest in operating expenses in a fast-growing and rapidly evolving market. Even so, EMC (consolidated) should be able to expand its operating margins going forward."

"We believe that EMC's core Information Infrastructure business is undervalued and is likely to remain undervalued in the foreseeable future. EMC owns roughly 80% of VMware and continues to buy VMware shares in the open market, signaling that it has no plans to spin out VMware," added Wedbush.

EMC closed Wednesday at $27.08, gaining $0.92, or 3.52 percent.