UBS Maintains a 'Buy' on VMware (VMW); Defying Gravity

UBS maintains a 'Buy' on VMware (NYSE: VMW), PT increased from $114 to $125.

UBS analyst says, "VMW beat across all metrics driven by higher ELA transaction volumes, not elephant deals. It continues to see early ELA renewals and increased ELA traction with SMBs. With a strengthening product stack and the new consumption-based pricing model for vSphere 5 launching in CQ3 its momentum should continue in the 2H and into FY12...FY11E raised to $3.74B/$2.10 (y/y revs +31.1%, OM +150bps) from $3.657B/$2.00 and at the high-end of positively revised guidance. FY12E raised to $4.5B/$2.50 (revs +20%, OM +70bps y/y) from $4.35B/$2.35 prior. F3QE raised to $935M/$0.50 vs $902M/$0.48 prior and guide $.915M-$940M."

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

Shares of VMware closed at $106.02 yesterday.

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