Needham & Company Reiterates a 'Buy' and $120 PT on VMware (VMW) Following Analyst Day
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Price: $142.48 --0%
Rating Summary:
17 Buy, 36 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 4 | Down: 8 | New: 9
Rating Summary:
17 Buy, 36 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 4 | Down: 8 | New: 9
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Needham & Company reiterates a 'Buy' on VMware (NYSE: VMW) price target of $120.00.
Needham analyst says, "The VMware analyst day focused on “managing the cloud”, after years of VMW discussing the “build-out” phase of virtualization.
Although the VMW analyst day did not unveil dramatic news, we think investors should continue to focus on the current (and robust) core business opportunity for VMware, which is virtualization and cloud buildout – it is our sense that we are in the third-or-fourth inning of the “build-out” phase of public and private cloud, and VMW is still the market leader. Guidance for SeptQ and CY11 was reiterated, with management saying buying behavior hasn’t changed materially in the last six weeks, in spite of the general investor fears about software spending; we believe the reiteration of guidance and confidence at VMW underscores how software spending on virtualization and cloud continues to be a strategic priority at companies. We believe the “bets” and “investments” referred to at analyst day are priced into shares, as VMW and CEO Paul Maritz have been on a nearly $1 billion shopping spree for assets over the past 3 years, building out a virtualization stack for “build and manage”; investors likely understand these investments are for future revenue opportunities, which VMW estimates as a $30B addressable market."
For more ratings news on VMware click here and for the rating history of VMware click here.
Shares of VMware closed at $90.71 yesterday.
Needham analyst says, "The VMware analyst day focused on “managing the cloud”, after years of VMW discussing the “build-out” phase of virtualization.
Although the VMW analyst day did not unveil dramatic news, we think investors should continue to focus on the current (and robust) core business opportunity for VMware, which is virtualization and cloud buildout – it is our sense that we are in the third-or-fourth inning of the “build-out” phase of public and private cloud, and VMW is still the market leader. Guidance for SeptQ and CY11 was reiterated, with management saying buying behavior hasn’t changed materially in the last six weeks, in spite of the general investor fears about software spending; we believe the reiteration of guidance and confidence at VMW underscores how software spending on virtualization and cloud continues to be a strategic priority at companies. We believe the “bets” and “investments” referred to at analyst day are priced into shares, as VMW and CEO Paul Maritz have been on a nearly $1 billion shopping spree for assets over the past 3 years, building out a virtualization stack for “build and manage”; investors likely understand these investments are for future revenue opportunities, which VMW estimates as a $30B addressable market."
For more ratings news on VMware click here and for the rating history of VMware click here.
Shares of VMware closed at $90.71 yesterday.
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