UBS Reiterates Buy and $83 Price Target on VMware (VMW)
- Top 10 News for 12/2: Crude Rips on OPEC Cut; Starbucks' Schultz Steps Down; Nonfarm Payrolls Flat in Nov.
- Unemployment Rate Drops to 4.6%
- Bond yields slip on U.S. jobs data, euro steady before Italy vote
- Alibaba (BABA) Founder Jack Ma Discuss Plans to Retire; 'I Don't Want to Die at the Office'
- Starbucks Coffee (SBUX) CEO Howard Schultz to Step Down, Appointed Executive Chairman; Kevin Johnson New CEO
News and research before you hear about it on CNBC and others. Claim your 2-week free trial to StreetInsider Premium here.
UBS reiterated a Buy rating and $83.00 price target on VMware (NYSE: VMW) after spending time on the road with management.
Analyst Brent Thill "VMW is seeing an influx of positive catalysts that could help drive the stock higher - accelerating '16 billings growth, a building base of new products (NSX, vSAN, EUC) offsetting the legacy product slowdown, Dell/EMC acquisition now in the rear view mirror, cash flow could grow 40% in FY16E, and a $1.2Bn buyback with >$8.5Bn in cash + $2Bn in annual cash flow. This is a major contrast to the significant headwinds VMW has faced over the past year - material slowdown in overall license revenue and billings ('15 license rev. slowed to 5% from 14%, '15 billings slowed to 2% from 16%), a complete U-turn in their public cloud strategy (from build to partner), and the overhang of Dell/EMC and associated tracking stock which drove the stock down >50% from its $90+ high. We believe these headwinds are slowly turning into tailwinds and that ultimately VMW can have a secure position in the hybrid cloud, where the majority of larger enterprises will place their IT assets."
Shares of VMware closed at $74.34 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- UPDATE: Oppenheimer Starts HubSpot Inc (HUBS) at Outperform
- Jefferies Raises Price Target on Ulta Salon (ULTA) to $270; Reiterates Hold
- Jefferies Cuts Price Target on Kroger (KR) to $30 Following 3Q and Guidance
Create E-mail Alert Related CategoriesAnalyst Comments
Related EntitiesUBS, 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!