Needham & Company Reiterates a 'Buy' on VMware (VMW); Creating a Horse Race

July 18, 2012 8:56 AM EDT Send to a Friend
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Price: $83.44 -0.27%

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    27 Buy, 15 Hold, 3 Sell

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    Up: 29 | Down: 43 | New: 4
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Needham & Company reiterates a 'Buy' on VMware (NYSE: VMW) price target of $127.00.

Analyst, Scott Zeller, said, "The announcement of Pat Gelsinger as the new
CEO of VMW (effective Sept 1) seems to be driven by two factors: (a) it appears EMC (NYSE: EMC) could be creating a “horse race” for succeeding CEO Joe Tucci by moving Pat Gelsinger into a CEO role as a “test” (our view), and (b) we believe VMW may be transitioning from “build the stack” mode under CEO Maritz, and moving toward “execute on, and sell the stack” under respected operating executive Gelsinger. As for the JuneQ VMW preannouncement, results were slightly above consensus, and the CY12 outlook was reiterated on revenue and margins."

FY12 EPS estimate raised from $2.68 to $2.71.
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 $80.29 yesterday.


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