Wells Fargo Downgrades VMware on High Growth Estimates (VMW)

In a note released Wednesday morning, Wells Fargo analyst, Jason Maynard down graded shares of VMware, Inc.

from Outperform to Market-perform and reduced his valuation range from $107-112 to $98-105. The downgrade comes amid concerns that growth estimates for the company are too high. Maynard says the company relies on its new product areas to sustain growth and believes that as growth in the core business slows, new product areas will be unable to pickup the slack. For the second quarter, Maynard is expecting VMware to post "decent" results. However, he is more bullish on the company's competitors and has reiterated Buys on Red Hat Inc.

and Citrix Systems, Inc.

.