S&P Capital IQ Reiterates its HOLD Rating on VMware

October 19 00:00 2011

NEW YORK, October 19 (RainbowNewsLine.com) – Analyst Jim Yin of S&P Capital IQ reiterates his HOLD rating on the shares of VMware (NYSE:VMW). The target price is set to $92.

Analyst Jim Yin, in a research note published yesterday mentions that the company reported its Q3 operating EPS short of the estimates, although sales increased by 32% to reach $942 million that was $11 million above the estimates. Both revenues and unearned revenues increased by 29% and 48%, respectively, steered by strong renewals and large enterprise deals, the analyst says. The company is expected to benefit from the shift towards the cloud computing going forward, and gain traction in its management tools, the analyst adds. The EPS estimates for 2011 and 2012 have been reduced from $1.54 to $1.51 and from $1.79 to $1.78 respectively, due to concerns over slower IT spending growth in 2012.