Jefferies Keeps Hold Rating, PT on VMware (VMW); Channel Checks Positive, Growth More Muted

April 9, 2013 8:28 AM EDT
Get Alerts VMW Hot Sheet
Price: $82.01 --0%

Rating Summary:
    23 Buy, 30 Hold, 4 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 0 | Down: 0 | New: 0
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Jefferies is maintaining a Hold rating and $82 price target on VMware, Inc. (NYSE: VMW) following recent channel checks.

Analyst Ross MacMillan and his team noted that demand was consistent throughout. He comments, "Channel partners saw slightly better Y/Y license growth in 1Q13 from 4Q12 and broadly consistent sequential trends as last year. Expectations for CY13 license growth of +9% Y/Y were unchanged."

Over two-thirds of partners remain on plan for Q113. Over 60 percent of workloads are virtualized, keeping MacMillian on the sidelines for now.

Other key points observed in the survey:
  1. Momentum in vCloud Suite is expected to slowly build;

  2. Opinion toward vCloud Hybrid Service was favorable amid recent introduction;

  3. Cloud Credits and the Pivotal Initiative views were largely muted, and

  4. Windows Server 2012 is driving Microsoft (Nasdaq: MSFT) Hyper V adoption, but expectations for multi-vendor virtualization environment growth slowed slightly.

Into the open, VMware shares are flat.

For an analyst ratings summary and ratings history on VMware click here. For more ratings news on VMware click here.

Shares of VMware closed at $76.36 yesterday.

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