Needham & Company Reinstates VMware (VMW) at Hold
- Health, energy stocks hit Wall Street, Microsoft lifts Nasdaq
- Unusual 11 Mid-Day Movers 10/21: (ALKS) (CXRX) (CERC) Higher; (SGY) (MBRX) (STS) Lower
- AT&T (T) in Advanced Talks to Acquire Time Warner (TWX) - DJ
- Rockwell Automation (ROK) Said to Attract Takeover Interest from Schneider Electric - Source
- British American Tobacco Offers to Acquire Remaining Shares of Reynolds American (RAI) for $56.50/Share
Get daily under-the-radar research with StreetInsider.com's Stealth Growth Insider Get your 2-Wk Free Trial here.
Needham & Company reinstates coverage on VMware (NYSE: VMW) with a Hold rating.
Analyst Scott Zeller commented, "We are reinstating coverage of VMW at HOLD. On Sept 7, 2016, Dell’s acquisition of EMC closed after first being announced in October 2015. Despite the acquisition of EMC, VMW's controlling shareholder, VMware shares will continue to trade as VMW. We think the prospects for VMW have improved since the beginning of this year following a restructuring and the subsequent “undoing” of the plan to merge Virtustream from EMC into VMW’s cloud practice. The reversal of the Virtustream plan was key for shares, as the original plan had a high CY16 capex of $625m, which would have impacted FCF. Free cash flow guidance for CY16 has been increased to JuneQ’s guidance of $2.13B, and shares have responded positively. In an August press interview, VMW reaffirmed CY16 revenue and cash flow guidance."
Shares of VMware closed at $72.76 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- UPDATE: Stifel Starts Xenon Pharmaceuticals (XENE) at Buy
- RBC Capital Raises Price Target on Danaher (DHR) Following 'Clean' 3Q Report
- Jefferies Cuts Price Target on Boston Beer Co. (SAM) to $140 Following Weak 3Q
Create E-mail Alert Related CategoriesAnalyst Comments, New Coverage
Related EntitiesNeedham & Company, Definitive Agreement
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!