Baird Cuts Price Target as VMware's (VMW) 3Q Results Fall In-Line with Preliminary Results

Baird maintained an Outperform rating on VMware (NYSE: VMW), and cut the price target to $80.00 (from $95.00), following the company's 3Q15 earnings results. Revenue/non-GAAP EPS of $1.67 billion/$1.02 was in line with the preliminary results released in connection with the Dell-EMC merger announcement.

Analyst Jayson Noland commented, "Management cited a secular shift related to cloud computing adoption as a contributor to lower-than-expected billings growth in the quarter. This is not a new challenge for VMware, but it was enough to take the stock down in the after-market. We continue to view VMware as the best positioned software infrastructure provider for the software defined data center and hybrid cloud computing."

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 $68.76 yesterday.

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