Baird Cuts Price Target as VMware's (VMW) 3Q Results Fall In-Line with Preliminary Results
Baird maintained an Outperform rating on VMware (NYSE: VMW), and cut the price target to $80.00 (from $95.00), following the company's 3Q15 earnings results. Revenue/non-GAAP EPS of $1.67 billion/$1.02 was in line with the preliminary results released in connection with the Dell-EMC merger announcement.
Analyst Jayson Noland commented, "Management cited a secular shift related to cloud computing adoption as a contributor to lower-than-expected billings growth in the quarter. This is not a new challenge for VMware, but it was enough to take the stock down in the after-market. We continue to view VMware as the best positioned software infrastructure provider for the software defined data center and hybrid cloud computing."
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Shares of VMware closed at $68.76 yesterday.