Piper Jaffray Upgrades VMware (VMW) to Overweight

Piper Jaffray upgraded VMware (NYSE: VMW) from Neutral to Overweight with a price target of $111.00.

Analyst Mark R. Murphy cited five reasons for the upgrade: 1) a mixed Q1 is out of the way and shares have been dragged down by the tech sell-off, but we see a solid set-up for a Q2 bookings rebound and more powerful multi-year product drivers than VMW has enjoyed in quite some time; 2) investors may have to favorably revise their opinion of VMW's Management offerings as our latest reseller survey shows adoption rates moving to their highest level ever; 3) VMware's opportunity to mow down Citrix is more tangible than investors realize based upon product parity and recent talent flow from Citrix to VMware; 4) our CIO/reseller survey work provide strong validation for VMW as an innovative/respected company with a mid-teens-plus trajectory equating to solid share gains; 5) valuation at ~14x EV/OCF, in line with NUAN (no organic growth) and TIBX (6% organic growth).

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 $96.03 yesterday.

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