Friday October 9, 05:45 PM
UPDATE 1-RESEARCH ALERT-Barclays raises IT hardware sector
Oct 9 (Reuters) - Barclays Capital raised the IT hardware sector to 'positive' from 'neutral,' saying server and storage demand is picking up and that the momentum could continue through 2010.
'We believe
the IT hardware sector is set to benefit from four key themes, including multinational quality, attractive valuations on a relative basis, many upgrade cycles, and pent-up demand, especially for servers and storage,' analyst Ben Reitzes said, citing a survey of chief information officers.
Windows 7, Microsoft Corp (NASDAQ: MSFT - news) 's new operating system, is expected to drive an enterprise cycle in the second half of 2010 and PC-related names such as Dell Inc (NASDAQ: DELL - news) and Hewlett-Packard Co could see a pick up then, the brokerage said.
It, however, remains less bullish on the upgrade thesis for PCs as compared with servers.
Results in storage are likely more positive for data storage equipment makers like EMC Corp (NYSE: EMC - news) and NetApp Inc , the brokerage added.
Barclays (LSE: BARC.L - news) expects PC makers such as HP and Dell to benefit from improvement in demand for servers, adding that companies with storage, networking and security plays should fare better through 2010.
It raised its price targets on the stocks of IBM Corp to $140 from $119 and Netapp to $31 from $25.
(Reporting by Manasi Phadke in Bangalore; Editing by Anil D'Silva) Keywords: ITHARDWARE/RESEARCH BARCLAYS
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