UPDATE: Wunderlich Securities Downgrades Vmware to Hold Following Q4 Results, Guidance

Wunderlich Securities downgraded Vmware

from Buy to Hold and lowered the price target from $100.00 to $75.00. Wunderlich Securities noted, "In balancing the positive 4Q12 inflection in revenue, license, and bookings growth against guidance, we come out perplexed. The optimist in us would like to attribute management guidance to conservatism, yet the magnitude of the shortfall relative to consensus suggests something more nefarious. With another model revision likely ahead resulting from the Pivotal Initiative, we believe new investors will be sidelined by unanswered questions. We are therefore downgrading shares of VMW to Hold and reducing our price target to $75. Vmware closed at $98.32 on Monday.