Oppenheimer Believes VMware (VMW) Won’t Stop Here

Oppenheimer analyst Ittai Kidron reiterated a Buy rating on VMware (VMW) today and set a price target of $170. The company’s shares closed yesterday at $143.74, close to its 52-week high of $146.17.

Kidron noted:

“VMware is one of our top picks for 2019. Our bullish thesis is based on: (1) a growing number of near-term hybrid-cloud growth levers; (2) early traction of VMC on AWS and its long-term value-creation potential; (3) multiple product upsell opportunities (SDDC and new the removal of the DVMT overhang (reverse-merger scenario). Overall, these opportunities reinforce VMware’s on-premise strategic importance, offer top-line upside opportunities, and mitigate growing concerns related to a slowing macro environment. With a broader hybrid- cloud portfolio, VMware is well positioned. We’re tweaking estimates and lowering our PT to $170 from $180 to account for its recent $11B dividend. Maintain Outperform.”

According to, Kidron is a top 25 analyst with an average return of 25.7% and a 66.5% success rate. Kidron covers the Technology sector, focusing on stocks such as Citrix Systems, New Relic Inc, and Cloudera Inc.

Currently, the analyst consensus on VMware is a Moderate Buy with an average price target of $176.25, implying a 22.6% upside from current levels. In a report issued on January 4, KeyBanc also reiterated a Buy rating on the stock with a $172 price target.


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The company has a one-year high of $146.17 and a one-year low of $90.10. Currently, VMware has an average volume of 1.48M.

Based on the recent corporate insider activity of 74 insiders, corporate insider sentiment is negative on the stock.

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VMware, Inc. engages in the provision of cloud infrastructure and business mobility. Its products include Software-Defined Data Center, Hybrid Cloud Computing, and End-User Computing. It supports modernizing data centers, integrating public clouds, empowering digital workspaces and transforming security.

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