Cowen Cuts Price Target on VMware (VMW) Following Dell's Announced Acquisition of EMC

Cowen reiterated an Outperform rating on VMware (NYSE: VMW), and cut the price target to $87.00 (from $90.00), following Dell's announced acquisition of EMC. As part of the deal, Dell will pay EMC shareholders with VMW "tracking stock", or stock that will follow the 19% of VMW publicly traded as common stock. The new tracking stock will broaden VMW's effective float.

Analyst Gregg Moskowitz commented, "Dell announced it is acquiring EMC, financing part of the ~$64b deal with VMW tracking stock. VMW also preannounced light 3Q billings. While we believe this deal certainly could have been better structured (i.e. there is no collar on VMW's stock), and the billings were disappointing, the selloff nonetheless looks clearly overdone, as we expect no meaningful impact to VMW's strategy or operations."

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 $78.65 yesterday.

You May Also Be Interested In

• Natera (NTRA) PT Raised to $270 at BTIG
• Craig-Hallum Upgrades Backblaze Inc (BLZE) to Buy
• Take-Two Interactive (TTWO) PT Raised to $368 at BofA Securities