UPDATE: Piper Jaffray Downgrades Vmware to Neutral on Disappointing Guidance

Piper Jaffray downgraded Vmware

from Overweight to Neutral and lowered the price target from $105.00 to $90.00. Piper Jaffray noted, "While performance improved in Q4 (with billings growth rates accelerating by 5 to 7 points across all 3 revenue line items), disappointing 2013 revenue guidance coupled with a material slowdown in hiring plans moves VMware out of growth-company territory, in our view. While our reseller survey suggested an improved Q4 performance, our reseller interviews showed: 1) a lack of net new large transactions reflecting high penetration; 2) softness in Nicira adoption; and 3) a likelihood that guidance wouldn't be electrifying as a result." Vmware closed at $98.32 on Monday.