FBR Capital Says Buy the Dip in VMware, Calls Mgmt's Outlook 'Overly Conservative'

FBR Capital's Daniel Ives is one of the few sell-side analysts sticking his neck out on VMware VMW Tuesday following the company's Q4 earnings beat but very concerning Q1 and FY13 guidance. Shares of VMware are down more than 20 percent this morning. Ives believes the weakness in the stock should be viewed as a buying opportunity. He noted VMware has always been known as a conservative guider but the company's new management team may be taking an even more conservative outlook due to the transitioning toward "pivotal initiative." Ives maintains an Outperform rating and $115 price target on VMware. He is modeling for major tailwinds during the second half of 2013 as the Enterprise license deal cycle renews. Shares of VMware were downgraded at MKM, Topeka, Morgan Stanley, Piper Jaffray, Sterne Agee and Wunderlich earlier.