UPDATE: Piper Jaffray Initiates Coverage on VMware with Overweight, $125 PT

Piper Jaffray initiates its coverage on VMware VMW with a rating of Overweight and a price target of $125 as it sees the company to be the backbone of cloud computing. Piper Jaffray comments, "VMware has innovated ahead of the curve to become the worldwide leader in virtualization software with 82% revenue share, according to IDC. The company has attracted more than 25,000 partners and counts 955 of the Fortune 1000 as customers. Because of its market leading position and the magnitude of the virtualization trend, we expect VMware can seize the opportunity to sell new products and increase wallet share with existing customers." VMW closed at $109.07 on Thursday.