VMware, Inc. (NYSE:VMW) shares are gaining more than five percent on Friday after its better than expected financial numbers for the December quarter. Following this, S&P Capital analyst Zino lifted his price target on the company’s stock from $81 to $99. This implied that the stock could still provide more than ten percent upside potentials from the current levels.
The price objective is based on a near peers PE of 20.3X his EPS estimate for 2018. VMware reported adjusted earnings of $1.43 a share for the December quarter that came in above the Capital IQ consensus of $1.40. Sales, which increased 8.8 percent on a year over year basis and 13 percent sequentially, topped expectations driven by Asia.
In his research note to clients, Zino told, “We positively view bookings momentum for NSX (now a $1B run rate) as well as well as within Hybrid cloud offerings (vCloud Air up 35%). We see new products driving growth in ’17 and note a new $1.2B share repurchase program.”
The stock gained 5.38 percent at last check.