VMware, Inc. (VMW) Likely to Build a Larger Cloud Presence
#DeutscheBank mets with #VMware, Inc. (NYSE:VMW) management in Palo Alto on Friday, ahead of their April 2017 first quarter call. Bottom line, the firm conclude that the near-term set-up for the stock may be more favorable than the firm thoughts, but Deutsche Bank is still concerned by the medium-term outlook in the large Compute and EUC segments, the bulk of VMW’s current revs mix. At 13x FY18e FCF and 19x non GAAP EPS, Deutsche Bank views the risk/reward as being relatively balanced but are raising its PT from $85 to $90. The firm reaffirm its HOLD rating.