Several Wall Street Firms Comment After VMWare's Analyst Day
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Rating Summary:
17 Buy, 36 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 0 | Down: 0 | New: 0
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VMWare's (NYSE: VMW) analyst meeting yesterday, which contained messages from the new CEO, Pat Gelsinger, was met with a little bit of a sell-off in shares today. The stock is currently down 0.89% to $91.50.
Gelsinger announced the Company would accelerate growth by expanding in software for managing computer networks and storage devices, which directly competes with Cisco Systems Inc. (Nasdaq: CSCO)
The software-defined data center, VMware’s $1.26 billion acquisition of Nicira Inc. will help VMW move to cloud computing. The new CEO's view includes older data centers looking like museums, thus the rapid move to be more cloud based, which in turn, should help grab additional market share.
Several Wall Street firms made comments today including:
Nomura analyst, Rick Sherlund, said, "We are bullish on the company’s vision and long-term growth opportunities post its analyst meeting held yesterday. The company altered its plan to charge more as users virtualize workloads above certain vRAM memory limitations, deciding it is better off if it encourages more workloads enabling it to then sell a broader suite of management tools for the virtualized datacenter. We like VMware’s vision, although remain Neutral on valuation."
Needham & Company analyst, Scott Zeller, saw a well-orchestrated “bridge” between outgoing CEO Maritz and CEO-in-waiting Pat Gelsinger. "The strong emphasis on the Software Defined Data Center (SDDC) and Software Defined Networking (SDN) in both the keynote as well as the analyst track suggests the recent Nicira acquisition for $1.2B is a major investment for future growth prospects."
However, Jefferies analyst, Ross MacMillan, thinks the Analyst Day highlights just adds uncertainty, saying the company is going through major changes (New CEO, rolling back prices, new product introductions, acquisition, updates to software defined data center, etc)
Gelsinger announced the Company would accelerate growth by expanding in software for managing computer networks and storage devices, which directly competes with Cisco Systems Inc. (Nasdaq: CSCO)
The software-defined data center, VMware’s $1.26 billion acquisition of Nicira Inc. will help VMW move to cloud computing. The new CEO's view includes older data centers looking like museums, thus the rapid move to be more cloud based, which in turn, should help grab additional market share.
Several Wall Street firms made comments today including:
Nomura analyst, Rick Sherlund, said, "We are bullish on the company’s vision and long-term growth opportunities post its analyst meeting held yesterday. The company altered its plan to charge more as users virtualize workloads above certain vRAM memory limitations, deciding it is better off if it encourages more workloads enabling it to then sell a broader suite of management tools for the virtualized datacenter. We like VMware’s vision, although remain Neutral on valuation."
Needham & Company analyst, Scott Zeller, saw a well-orchestrated “bridge” between outgoing CEO Maritz and CEO-in-waiting Pat Gelsinger. "The strong emphasis on the Software Defined Data Center (SDDC) and Software Defined Networking (SDN) in both the keynote as well as the analyst track suggests the recent Nicira acquisition for $1.2B is a major investment for future growth prospects."
However, Jefferies analyst, Ross MacMillan, thinks the Analyst Day highlights just adds uncertainty, saying the company is going through major changes (New CEO, rolling back prices, new product introductions, acquisition, updates to software defined data center, etc)
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