VMware's Business Transition: Analyst Sees Potential In Broadcom Acquisition For Shareholder Value
Portfolio Pulse from Nabaparna Bhattacharya
BMO Capital Markets analyst Keith Bachman reiterated a Market Perform rating on Vmware, Inc. (VMW), raising the price target to $160 from $140. VMW reported a Q2 FY24 revenue increase of 2% Y/Y to $3.41 billion, missing the consensus of $3.46 billion. The analyst believes Broadcom Inc.'s (AVGO) acquisition makes sense for VMW shareholders. VMW shares are trading lower by 2.84% to $163.98.
September 01, 2023 | 6:35 pm
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NEUTRAL IMPACT
Broadcom's proposed acquisition of Vmware is believed to make sense for VMW shareholders according to BMO Capital Markets analyst.
The analyst's positive outlook on the acquisition could potentially influence investor sentiment positively. However, the impact on Broadcom's stock is indirect and depends on the final terms of the acquisition and its execution.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70
NEUTRAL IMPACT
Vmware's price target has been raised to $160 by BMO Capital Markets analyst. The company's Q2 FY24 revenue increased by 2% Y/Y but missed the consensus. The analyst believes Broadcom's acquisition makes sense for VMW shareholders.
The analyst's positive outlook on the Broadcom acquisition and the raised price target could potentially influence investor sentiment positively. However, the missed revenue consensus and the current trading lower might offset this positive impact.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90