Wells Fargo Starts BMC Software (BMC) at Outperform; Secular Cloud Management Play

Wells Fargo initiates coverage on BMC Software (NASDAQ: BMC) with an Outperform. PT range is $45-$50.

Wells analyst says, "After enjoying success due to the mainframe boom, BMC has repositioned itself to take advantage of new cloud computing and virtualization infrastructures. In our view, BMC is well positioned to benefit from secular trends in cloud management and is one of our top picks to play the cloud/virtualization opportunity. Our investment thesis is driven by two key factors: (1) stable FCF generation and inexpensive valuation make BMC a defensive lower-risk name in any core portfolio, and (2) while trading at a value multiple, the company is in the early innings of a strategic shift leveraged to key new computing architectures, which could rejuvenate bookings growth."

For more ratings news on BMC Software click here and for the rating history of BMC Software click here.

Shares of BMC Software closed at $40.48 yesterday.

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