Oppenheimer Reiterates Outperform On VMware Following Mixed 3Q14 Results


In a research report issued today, Oppenheimer analyst Shaul Eyal reiterated an Outperform rating on VMware (NYSE:VMW) and reduced his price target to $105 (from $110), as the company’s 3Q results exceeded consensus metrics on revenue and EPS but bookings and cash flow falling short of expectations leaves investors with a sour taste.

Eyal wrote, “While 4Q/FY14 guidance was left intact, VMW’s commentary about: 1.) larger ELAs becoming more complex to close; 2.) slippage of a sizable Federal opportunity (still in play though); and 3.) pockets of weakness in Germany, Russia and Japan raising some near-term uncertainty. That said, NSX, AirWatch and vSAN had strong showing and remain building blocks for the coming years. While we mostly view the quarter as a speed bump, we’re lowering our PT.

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Shaul Eyal has a total average return of 6.5% and a 59.4% success rate. Eyal has a 3.0% average return when recommending VMW, and is ranked #583 out of 3337 analysts.

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