EMC (EMC) shares are “severely undervalued,” Bank of America analyst Scott Craig said as he launched coverage of the company with a Buy rating and a $24 price target.

Craig writes that investors are valuing the core EMC business - that is, ex VMware (VMW) - at a high-single-digit P/E. Apply a multiple of 16-17 times, he says, and you get a target price of $24. He says that the stock offers a good way “to capture the value of VMW, cheaply.” He notes that even if VM shares fell 40%, core EMC at the current level would be priced at just 17x.

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