BMO Capital Cuts Price Target as VMware (VMW) Tries to Sell Virtustream Assets
BMO Capital maintained a Market Perform rating on VMware (NYSE: VMW), and cut the price target to $76.00 (from $88.00), as the company forms a JV with EMC to sell Virtustream assets.
Analyst Keith Bachman commented, "EMC and VMW are forming a JV to sell the recently acquired Virtustream assets. We believe this new company only adds to the confusion and complexity with customers and investors. All else equal, we believe that customers wouldrather buy from fewer vendors, not more. We have not been fans of thefederation approach for a variety of reasons, including deleveraging the sales force, and Virtustream adds to the sales complexity."
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Shares of VMware closed at $68.76 yesterday.