Goldman Sachs Reviews VMware's Earnings

In a report published Wednesday, analysts at Goldman Sachs maintain their buy rating on

. The price target has been raised from $92 to $102. The company has reported its 1Q15 revenue marginally above the consensus as well as the high end of the guidance. The company reported over 10 percent year on year growth in revenue for 1Q15, with the license revenue in line with the guidance range, with over 3 percent year on year growth. The non-GAAP EPS was also above the high end of the guidance range and higher than the consensus expectations, driven by outperformance in non-GAAP operating margins. However, the 1Q15 billings and long-term deferred revenue came in below the Street consensus. VMWare reduced its revenue growth guidance, based on increased currency headwinds, while reiterating its constant currency guidance for CY15. "We view VMware's quarter as solid in the context of what appears to be a challenging 1Q15 post a seasonally strong budget flush period in the December quarter. We believe its results and affirmation of constant currency guidance for 2015 make the setup for the stock attractive if they can execute well in the June quarter," the analysts said.