VMware (VMW) Under Pressure on Possible CEO Departure; Nomura's Sherlund Weighs In
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Price: $71.00 +1.05%
Rating Summary:
18 Buy, 20 Hold, 3 Sell
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Today's Overall Ratings:
Up: 12 | Down: 19 | New: 22
Rating Summary:
18 Buy, 20 Hold, 3 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 12 | Down: 19 | New: 22
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Analysts at Nomura Securities weighed in on VMware (NYSE: VMW) with shares under pressure following press reports CEO Paul Maritz is departing and they will spin-out some assets.
Analyst Rick Sherlund comments, "VMware is in its quiet period and is scheduled to report its 2Q'12 earnings on Monday, July 23. One article suggested that Mr. Maritz will be replacing EMC (NYSE: EMC) CEO Joe Tucci, who may be retiring. EMC President and COO Pat Geisinger will, reportedly, move to VMware as CEO. We have great admiration for Mr. Maritz and view his departure, if true, as a loss to VMware’s minority shareholders (EMC owns about 80% of VMware)."
Seperatly, there are reports that VMware would spin out its Cloud Foundry platform-as-a-service business as a wholly owned subsidiary of EMC. "Cloud Foundry does not account for a material portion of VMware’s revenues," Sherlund said.
Nomura Securities maintains their Neutral rating and price target of $120.
For an analyst ratings summary and ratings history on VMware click here. For more ratings news on VMware click here.
Shares of VMware last traded down 3.9 percent to $81.12, with a 52 week range of $74.69-$118.79.
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Analyst Rick Sherlund comments, "VMware is in its quiet period and is scheduled to report its 2Q'12 earnings on Monday, July 23. One article suggested that Mr. Maritz will be replacing EMC (NYSE: EMC) CEO Joe Tucci, who may be retiring. EMC President and COO Pat Geisinger will, reportedly, move to VMware as CEO. We have great admiration for Mr. Maritz and view his departure, if true, as a loss to VMware’s minority shareholders (EMC owns about 80% of VMware)."
Seperatly, there are reports that VMware would spin out its Cloud Foundry platform-as-a-service business as a wholly owned subsidiary of EMC. "Cloud Foundry does not account for a material portion of VMware’s revenues," Sherlund said.
Nomura Securities maintains their Neutral rating and price target of $120.
For an analyst ratings summary and ratings history on VMware click here. For more ratings news on VMware click here.
Shares of VMware last traded down 3.9 percent to $81.12, with a 52 week range of $74.69-$118.79.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
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