Needham & Company Reiterates a 'Buy' on VMware (VMW); Trimming Estimates - Not Immune
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Price: $69.92 +0.27%
Rating Summary:
18 Buy, 20 Hold, 3 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 24 | Down: 17 | New: 24
Rating Summary:
18 Buy, 20 Hold, 3 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 24 | Down: 17 | New: 24
Trade VMW Now!
Needham & Company reiterates a 'Buy' on VMware (NYSE: VMW) price target of $112.00 (from $127.00).
Analyst, Scott Zeller, said, "The full results for VMware’s JuneQ were in-line with last week’s positive preview, which accompanied news of a CEO change at the company. Today’s most important events were (a) guidance, though reiterated for CY12, is more cautious with a softer SeptQ, (b) VMW is making a big $1.26B investment in network gear virtualization by acquiring young startup Nicira and (c) deferred revenue (+42% y/y) and bookings (+23% y/y) suggest underlying strength at VMW, despite the cautious guidance for SeptQ."
"We believe valuation could again expand, given recovery in macro tone, coupled with acceleration of license growth. Trimming estimates for 2H12 license, now at +13% y/y vs. previous +15% y/y; this reduction flows through our CY13 estimates, lowering our CY13 revenue, yet CY13 EPS remains unchanged."
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 $89.23 yesterday, with a 52 week range of $74.69-$118.79.
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Analyst, Scott Zeller, said, "The full results for VMware’s JuneQ were in-line with last week’s positive preview, which accompanied news of a CEO change at the company. Today’s most important events were (a) guidance, though reiterated for CY12, is more cautious with a softer SeptQ, (b) VMW is making a big $1.26B investment in network gear virtualization by acquiring young startup Nicira and (c) deferred revenue (+42% y/y) and bookings (+23% y/y) suggest underlying strength at VMW, despite the cautious guidance for SeptQ."
"We believe valuation could again expand, given recovery in macro tone, coupled with acceleration of license growth. Trimming estimates for 2H12 license, now at +13% y/y vs. previous +15% y/y; this reduction flows through our CY13 estimates, lowering our CY13 revenue, yet CY13 EPS remains unchanged."
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 $89.23 yesterday, with a 52 week range of $74.69-$118.79.
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