UPDATE: Oppenheimer Upgrades VMware (VMW) to Outperform

(Updated - October 31, 2016 9:33 AM EDT)

Oppenheimer upgraded VMware (NYSE: VMW) from Perform to Outperform with a price target of $90.

Analyst Ittai Kidron said, "Our positive stance is based on (1) recent AWS and IBM partnerships, which validate VMware as a critical hybrid cloud partner; (2) now, a more complete software-defined data center (SDDC) vision; (3) improved product diversity, with new solutions offsetting challenges to core; and (4) our belief that VMware can deliver EPS upside and that the shares undervalue this upside opportunity and over-discount cloud risks. We also note the possible positive impact of Dell's distribution channel, pegged by VMware at $1B annual revenue. We see upside as investors gradually buy into VMware's hybrid cloud strategy and VMware delivers consistent EPS upside, disproving concerns about growth/public cloud."

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 $77.65 yesterday.

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