Piper Jaffray Cos. Reiterates “Neutral” Rating for VMware (VMW)
VMware (NYSE:VMW)‘s stock had its “neutral” rating reiterated by investment analysts at Piper Jaffray Cos. in a note issued to investors on Thursday, AmericanBankingNews.com reports.
The analysts wrote, “VMware competitor Citrix announced preliminary Q3 results, guiding revenue and earnings below expectations. As a reminder, our recent work has shown that VMware’s View product is rapidly gaining share and would likely cause problems for Citrix. Our last few VMW notes (including July 23 and September 4) highlighted industry feedback indicating VMware is much more competitive with Citrix and likely taking share. VMware resellers had noted Citrix customers approaching them ‘more and more’, stated that traction in VMware’s desktop virtualization solution (View) is ‘exploding’ and that VMware has closed a significant portion of the competitive gap between View and the Citrix desktop virtualization offering. We think VMW’s inroads have caught up to Citrix and contributed to the negative preannouncement, and VMW’s progress should be appreciated by investors, but believe VMW is fairly valued for now at a low 20s EPS multiple. Neutral, $87 PT.”
Shares of VMware (NYSE:VMW) traded up 1.17% during mid-day trading on Thursday, hitting $79.85. The stock had a trading volume of 1,412,284 shares. VMware has a 1-year low of $64.86 and a 1-year high of $99.55. The stock has a 50-day moving average of $84.65 and a 200-day moving average of $77.21. The company has a market cap of $34.297 billion and a P/E ratio of 43.61.
VMware (NYSE:VMW) last posted its quarterly earnings results on Tuesday, July 23rd. The company reported $0.79 EPS for the quarter, beating the Thomson Reuters consensus estimate of $0.77 by $0.02. The company had revenue of $1.24 billion for the quarter, compared to the consensus estimate of $1.23 billion. During the same quarter in the prior year, the company posted $0.68 earnings per share. The company’s quarterly revenue was up 10.4% on a year-over-year basis. Analysts expect that VMware will post $3.32 EPS for the current fiscal year.
VMW has been the subject of a number of other recent research reports. Analysts at Janney Montgomery Scott reiterated a “buy” rating on shares of VMware in a research note to investors on Thursday, October 3rd. They now have a $100.00 price target on the stock. Separately, analysts at FBN Securities upgraded shares of VMware from a “sector perform” rating to an “outperform” rating in a research note to investors on Thursday, October 3rd. They now have a $100.00 price target on the stock, up previously from $90.00. Finally, analysts at Jefferies Group cut their price target on shares of VMware from $105.00 to $100.00 in a research note to investors on Thursday, October 3rd. They now have a “buy” rating on the stock. Three equities research analysts have rated the stock with a sell rating, sixteen have issued a hold rating, eighteen have assigned a buy rating and one has assigned a strong buy rating to the company. VMware has an average rating of “Hold” and an average price target of $92.55.
VMware, Inc is the provider of virtualization infrastructure solutions utilized by organizations to help transform the way they build, deliver and consume information technology (NYSE:VMW) resources.
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