Why Has Gabelli & Co Given VMware (NYSE:VMW) a $84 Price Target
Gabelli & Co have begun its coverage for VMware (NYSE:VMW), this morning Monday, 14 December. The brokerage firm found the stock of VMW quite attractive and now has a Estimated Target Price of $84 with a key Buy rating.
From a total of 29 analysts covering VMware Inc (NYSE:VMW) stock, 13 rate it a ”Buy”, 1 a “Sell”, and 23 a ”Hold”. This means that 35% of the ratings are positive. The highest target price is $100 while the lowest target price is $60. The mean of all analyst targets is $75.52 with a 38.25% above today’s ($59.08) stock price. VMware Inc was the topic of 44 analyst reports since July 22, 2015 according to the firm StockzIntelligence Inc. M Partners maintained shares on December 2 with “Buy” rating. Mizuho maintained shares with “Neutral” rating and $60 target share price in a report from an October 21. Drexel maintained VMW stock in a recent report from October 21 with “Hold” rating. Macquarie Research downgraded the rating on October 21. Macquarie Research has a “Neutral” rating and a $70 price target on shares. Finally, Raymond James downgraded the stock to “Mkt Perform” rating in a report issued on an October 21.
The stock increased 0.04% or $0.03 during the last trading session, striking $59.08. Approximately 1,200 shares of stock traded hands. VMware, Inc. (NYSE:VMW) has declined 34.07% since May 11, 2015 and is downtrending. It has underperformed by 29.66% the S&P500.
The overall sentiment of institutions has increased to 0.94 in Q2 2015. Its up 0.02, from 0.92 in 2015Q2. The ratio is positive, as 56 institutions have sold all the shares of VMware, Inc. that they owned while 122 funds have taken shares off the table. 55 funds have purchased shares for the first time while 113 added to their positions. These institutions now hold 62.85 million shares or 12.36% less than the 71.71 million shares they owned in 2015Q2.
The Fund Cisco Systems Inc. currently is holding shares equating to 99.34% of its total portfolio in VMware, Inc. representing a total of 5.33 million shares. Another fund,Avalon Global Asset Management Llc, is holding a total of 76,300 shares equating to 4.34% of their holdings. Additionally, Bender Robert & Associates has a 55,449 share stake in VMware, Inc. which represents 2.96% of their total portfolio. The Fund, Gavekal Capital Llc, based out of Colorado, has also built up a stake in the stock, which represents a total of 2.42% of their total portfolio. Finally Gillespie Robinson & Grimm Inc, a fund which is based in the state of Connecticut reported a total holdings of 269,396 shares.
VMware, Inc. is a provider of virtualization infrastructure solutions. The company has a market cap of $24.86 billion. The Firm develops and markets its product and service offerings within three product groups, which include software-defined data center , hybrid cloud computing and end-user computing (EUC). It has 26.68 P/E ratio. The Company’s SDDC is designed to transform the data center into an on-demand service that addresses application requirements by abstracting, pooling and automating the services that are required from the underlying hardware.
According to Zacks Investment Research, “VMware provides virtualization solutions from the desktop to the data center. Their solutions enable organizations to aggregate multiple servers, storage infrastructure and networks together into shared pools of capacity that can be allocated dynamically, securely and reliably to applications as needed, increasing hardware utilization and reducing spending. They have expanded their offering with virtual infrastructure automation and management products to address distributed and heterogeneous infrastructure challenges such as system recoverability and reliability, backup and recovery, resource provisioning and management, capacity and performance management and desktop security. They derive a significant majority of their revenues from their indirect sales channel that include distributors, resellers, x86 system vendors and systems integrators.”