BMO Capital Cuts Price Target as VMware (VMW) Tries to Sell Virtustream Assets

BMO Capital maintained a Market Perform rating on VMware (NYSE: VMW), and cut the price target to $76.00 (from $88.00), as the company forms a JV with EMC to sell Virtustream assets.

Analyst Keith Bachman commented, "EMC and VMW are forming a JV to sell the recently acquired Virtustream assets. We believe this new company only adds to the confusion and complexity with customers and investors. All else equal, we believe that customers wouldrather buy from fewer vendors, not more. We have not been fans of thefederation approach for a variety of reasons, including deleveraging the sales force, and Virtustream adds to the sales complexity."

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.

You May Also Be Interested In

• Incyte (INCY) PT Raised to $105 at Truist Securities
• Definium Therapeutics Inc (DFTX) PT Raised to $60 at Oppenheimer
• Devon Energy (DVN) PT Lowered to $67 at Wolfe Research: Activist Toms interest positive