UPDATE: Jefferies Downgrades VMware (VMW) to Hold

May 14, 2020 4:21 AM EDT
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Price: $155.82 -0.1%

Rating Summary:
    21 Buy, 32 Hold, 2 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 11 | Down: 5 | New: 41
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(Updated - May 14, 2020 4:35 AM EDT)

(updating comment)

Jefferies analyst Brent Thill downgraded VMware (NYSE: VMW) from Buy to Hold with a price target of $135.00.

The analyst comments "At current valuation, we believe risk/reward is not as favorable amid potential downside bias to ests. over the next 3-6 months: 1) we remain cautious on n-t on-premise IT spending in the current environment as cloud infrastructure dollars benefit from WFH build-outs (to which VMW has relatively lower exposure); 2) Street ests. have moved lower but need a further reset, in our view: 3) after peaking at 23.2x NTM FCF in Apr'19, the stock troughed at 11.1x in Mar'20 vs current 16.3x; risk/reward is not as favorable as it was a month ago. Over the long term, we recognize product efforts to support sustainable growth and would look to get more constructive as visibility improves."

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 $134.86 yesterday.

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