Nomura Securities Upgrades VMware (VMW) to Buy; Sentiment Overly Negative

Nomura Securities upgraded VMware (NYSE: VMW) from Neutral to Buy and maintains a price target of $95.00, saying sentiment on the Street may be overly negative.

Analyst Rick Sherlund commented, "Survey results suggest that business was likely a bit ahead of plan in Q1. We think sentiment on the Street is quite cautious on VMware and any upside (on a constant currency basis) could be a positive catalyst for improving sentiment. The migration of workloads to the cloud is a risk but also an opportunity for VMware to bridge over from existing data centers to new cloud-based workloads. Our view has started to shift, thinking that the market is evolving in a way that may be more positive overall. Separately, the upcoming end of life of Windows Server 2003 in July should be an incremental positive as these replacement servers are likely to be virtualized."

For an analyst ratings summary and ratings history on VMware click here. For more ratings news on VMware click here.

Shares of VMware closed at $80.36 yesterday.

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