Oppenheimer reiterated its Outperform rating on VMware (NYSE: VMW) and lowered the price target from $110.00 to $100.00.
Oppenheimer noted, “VMW delivered a solid 4Q12 but issued below Street FY13 outlook, and announced a two-tiered realignment plan to allocate necessary resources to core areas such as SDDC, cloud, and end-user computing while de-emphasizing non-core (i.e. SlideRocket). New management believes it’s the right time for this two-tiered alignment to capture long-term growth. This, coupled with below consensus guidance for FY13 could leave investors with a sour taste in their mouths. We’d buy the shares after the smoke clears as we still see room for top-line/EPS growth given conservative guidance.”
VMware closed at $98.32 on Monday.
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Tags: Oppenheimer
Posted in: Analyst Color, Price Target, Analyst Ratings