Collins Stewart Reiterates Buy on VMware

Collins Stewart is out with its report today on VMware

, reiterating Buy. In its report, Collins Stewart writes, "With VMware's strategic positioning continuing to improve & traction accelerating in mgmt tools & other products, we reiterate our Buy rating (43x our 2012 EPS of $2.50; 27x our 2012 FCF/shr est of $4.04). We note that VMW trades at a fwd PE of ~40x, vs. its historical median of ~45x and only 22x our FY12 FCF estimate of $4.04/shr." Collins Stewart maintains a $108 PT on VMW. At the time of posting, shares of VMW were trading pre-market at $92.39, up 1.85% from Tuesday's close.