VMware Up on Improved Guidance
Shares of VMware (NYSE: VMW) surged on Tuesday, trading up nearly 8% after the company raised its sales guidance for the first-quarter. Now, VMware expects fiscal-year 2014 sales growth in the range of 15%.
VMware shareholders have had a rocky road in recent months. In late January, shares plummeted after the company said its guidance for fiscal-year 2013 would fall below expectations. On Tuesday, the company reaffirmed that guidance.
Analysts have had a conflicted view on the company. After lowering its outlook in late January, a number of analysts cut their ratings and price targets on the stock. Topeka, Wunderlich, Sterne Agee and Piper Jaffray all took down their ratings and price targets. Barron's followed with an article telling investors not to anticipate a rebound.
However, Credit Suisse was bold enough to reiterate its Outperform rating, though lowered its price target. Likewise, FBR Capital decried VMware's management as being “overly conservative,” and urged investors to buy the dip.
Now, VMware is regaining some of that loss, although shares remain down over 13.5% on the year.
VMWare traded near $81.40 on Wednesday.
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