UPDATE: Topeka Capital Markets Downgrades Vmware to Hold on Macro Deterioration
Topeka Capital Markets downgraded Vmware (NYSE: VMW) from Buy to Hold with an $84.00 price target.
Topeka Capital Markets commented, "Last night, VMware delivered better than expected 4Q12 revenue and profits; however, the Company offered up a soft 1Q13 outlook due to a weakening macro environment. The weakness in licensing sales during the first half of 2013 is expected to drive a softer than expected year for licensing revenues, which we find a bit concerning given the recent launch of vCloud Suite 5.1. The macro tone and financial outlook was troubling and we believe the stock could be vulnerable to more downside in the coming weeks."
Vmware closed at $98.32 on Monday.
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