Stock Update (NYSE:EMC): LPC: Dell’s window wide open for EMC acquisition loan

[Reuters] – Computer giant Dell’s decision to wait out months of extreme credit market volatility appears to have paid off as it launched the biggest US syndicated term loan since last November into a market eager for exposure to debt backing the US$67bn acquisition of EMC Corp. The US$5bn Term Loan B (TLB), which hit the market more than seven months after the largest technology industry acquisition was announced, is US$3bn less than earlier planned, heightening demand for one of the few large new-money deals this year. Dell waited out months of market volatility before initiating its massive borrowing. Read more on this. EMC Corporation (EMC) , with a current value of $54.43B, began trading this morning at $27.76. Today’s price range has been between $27.73 and $27.88 per share with its 52-week range being $22.66 to $28.77. EMC shares are currently priced at 15.48x this year’s forecasted earnings, which makes them relatively expensive compared to the industry’s 11.19x forward p/e ratio. And for dividend hunters, the company pays shareholders $0.46 per share annually in dividends, yielding 1.66%. According to a consensus of 27 analysts, the earnings estimate of $0.42 per share would be $0.01 worse than the year-ago quarter and a $0.00 sequential decrease. The full-year EPS estimate is $1.80 which would be a $0.02 worse than last year’s full-year earnings. The quarterly earnings estimate is based on a consensus revenue forecast of the current quarter of $6.00 Billion. If realized, that would be a 1.15% decrease over the year-ago quarter. More recently, Raymond James downgraded EMC from Strong Buy to Outperform (Apr 7, 2016). Previously, Maxim Group upgraded EMC from Hold to Buy. The average price target for EMC shares by the analysts covering the stock is $28.74, which is 3.53% above where the stock opened this morning. See more in (NYSE:EMC) Similar Articles: Market Update: EMC Corporation (NYSE:EMC) – New EMC Open Source Tool Opens Massive Possibilities for Simple App Deployment to the Cloud and IoT Devices Company Update (NYSE:EMC): New EMC {code} Projects Broaden EMC’s Open Source Contributions Market Update: EMC Corporation (NYSE:EMC) – Dell acquisition target EMC to cut jobs in Q1