Bernstein Sees VMware (VMW) Multiple Contraction If Slowdown in Virtualization Market Continues
Tweet Send to a Friend
Get Alerts VMW Hot Sheet
Price: $72.29 -0.12%
Rating Summary:
19 Buy, 19 Hold, 2 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 13
Rating Summary:
19 Buy, 19 Hold, 2 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 13
Trade VMW Now!
Shares of VMware (NYSE: VMW) are getting clobbered Thursday afternoon, possibly on the heels of an earlier research note from Bernstein's Mark Moerdler. The analyst warned he is expecting a meaningful deceleration in the penetration rate of server virtualization over the next few years, consequently creating a scenario for multiple contraction in VMware shares.
Moerdler sees enterprises eventually getting anxious and looking for more inexpensive offerings from Microsoft (Nasdaq: MSFT) or Citrix (Nasdaq: CTXS). The analyst also noted the likelihood for a lag between efforts to virtualize security/management and a slowdown in this category of software.
The Bernstein analyst maintains a Market Perform rating and $116 price target on shares of VMware.
The stock last traded at $94.04, down about 7.4 percent from Wednesday's close.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
Moerdler sees enterprises eventually getting anxious and looking for more inexpensive offerings from Microsoft (Nasdaq: MSFT) or Citrix (Nasdaq: CTXS). The analyst also noted the likelihood for a lag between efforts to virtualize security/management and a slowdown in this category of software.
The Bernstein analyst maintains a Market Perform rating and $116 price target on shares of VMware.
The stock last traded at $94.04, down about 7.4 percent from Wednesday's close.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
You May Also Be Interested In
- UPDATE: Fannie Mae, Freddie Mac Surge as Seriously Delinquent Rate Falls Below 3%
- Wells Fargo Boosts Price Target on Pandora (P), Maintains Outperform
- Hewlett-Packard (HPQ) Q2 Performance Wins Praise on Wall Street; Jefferies Raises to Hold
Create E-mail Alert Related Categories
Analyst Comments, Momentum MoversComments
Login with Facebook
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
VMW
Bernstein Mark Moerdler on May 24, 2012 01:40 PMMark as Spam | Reply to this comment
Here we go again. A lot of analyst keeps saying this company is not a good investment. I bought this stock since $40 and keeps beating all of the quarterly estimates. Most analyst don't know what Virtualization is all about and what effects to our business economy.