Wunderlich Securities Upgrades VMware to Buy, Maintains PT at $95

Wunderlich Securities raises its rating on VMware (NYSE: VMW) to Buy from Hold as the pullback created in sympathy with Oracle (NASDAQ: ORCL) has created an entry opportunity for long-term investors.

Wunderlich Securities says, "Our checks indicate that customers are driving increased utilization of existing assets in the form of higher numbers of VMs per physical machine. This does not drive direct incremental revenue to VMware as licenses prior to version 5.0 are priced on a per server basis, but it does appear to be driving higher adoption of add-on tools to more effectively manage and protect servers with larger numbers of VMs deployed, in part offsetting the negative impact of server unit volumes."

VMW closed at $76.85 per share on Wednesday.