By Balachander Suriyanarayanan: Subscribe to Balachander's RSS feed
August 16, 2010 1:00 PM EDT
ThinkEquity LLC upgraded virtualization software maker VMware Inc. to Buy from Hold on accelerating underlying trends driven by larger, more-efficient servers and the availability of a more-mature data center operating system vSphere.
The brokerage, which raised its price target on the stock to $90.00 from $59.00, said the Palo Alto, California-based company’s new version of vSphere 4.1 continued to widen the competitive gap and drove broader adoption.
“Broadening overall adoption of virtualization combined with VMware's more-mature version of vShpere will drive accelerating market adoption in the coming years,” ThinkEquity said.
The brokerage said customer and partner checks suggest that at least 75 percent of VMware customers expect to upgrade to vSphere over the next year, and it views vSphere as a potential catalyst for accelerating license growth in the coming years.
Like us on Facebook
With SMB customers looking more seriously at virtualization because of the increasing prevalence of cloud computing, recent changes in pricing following the vSphere 4.1 release for the SMB market has significantly increased adoption, ThinkEquity said.
Shares of VMware, which is majority-owned by EMC Corp., closed Friday’s regular trading session 3.12 percent higher at $76.38. The shares are up 1.32 percent at $77.39 in pre-market trade on Monday.
Facing Uncertain Weekend, Investors Flee to Safe AssetsInvestors flocked to the security of safe-haven assets Friday, like U.S.
Diet Soda: Research Sparks Debate on Risks of Heart Disease, StrokePut down your diet soda and listen up. The bubbly zero calorie drink may increase your risk of heart disease, according to new research.
First Photos of Beyonce’s Baby Blue Ivy Carter Reignite Surrogacy Rumors [PHOTOS]The first photos of Beyonce's baby Blue Ivy Carter were released to the world on Friday by Beyonce and husband Jay-Z. The couple posted five photos one the Tumblr page "Hello Blue Ivy Carter.
Greece in Turmoil as EU Austerity Package Put on HoldGreece’s financial future in doubt after ministers look again at strict terms of European rescue package.
We value your privacy. Your email address will not be shared.
Wall Street Week Ahead: Weak Earnings Reports May Not Tame Strong Market Bulls
