Mizuho Securities Raises Price Target on VMware (VMW) to $61 Following 2Q Results
Mizuho Securities reiterated a Neutral rating on VMware (NYSE: VMW), and raised the price target to $61.00 (from $52.00) following the company's 2Q earnings report. The company delivered total license revenues of $644mm, ahead of consensus of $639mm. Total revenues of $1.69bn came in ahead of expectations as well. The company now expects FY16 total revenues of $6.950-7.050bn, including license revenues of $2.704-2.764bn.
Analyst Abhey Lamba commented, "VMware's 2Q16 results came in broadly above estimates. Declines in core compute moderated slightly while emerging products such as NSX and vSAN continued to show strength, albeit off a small base. EPS came in better on the revenue upside. For FY16, management raised guidance across all metrics which was better than expectations. We acknowledge improvement in performance but we remain wary of calling an inflection just yet. We maintain our Neutral rating and adjust our PT to $61 from $52."
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 $62.57 yesterday.