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What Do Analysts Recommend for VMware’s Stock after 1Q16 Earnings?

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Wall Street analysts’ views on VMware’s stock

Earlier in this series, we looked at VMware’s (VMW) recently announced fiscal 1Q16 results. We explored the company’s performance and offerings that will contribute to the company’s growth going forward. In the virtualization space, VMware faces stiff competition from Microsoft’s (MSFT) Hyper-V, Citrix’s (CTXS) Xen, and Red Hat’s (RHT) RHEV Desktop and server virtualization platform.

Now, let’s take a look at select market-centric views and metrics for VMware. Let’s start with Wall Street analysts’ views on the company. As we can see in the graph below, of the 25 analyst recommendations on VMware stock, 66% were “hold” as of April 20 while about 34% were “buy” recommendations. There are no “sell” recommendations on VMware stock.

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VMware’s price performance

VMware’s stock price movement during the past month has been mildly positive. As of April 20, the company’s stock has risen ~0.3%. The Wall Street consensus target price for VMware is $59.88 per share. The median target price was $60 as of April 20, 2016. VMware’s closing price was $58.54 on the same date.

You can consider investing in the SPDR S&P 500 (SPY) to gain exposure to the technology sector. The ETF invests about 18% of its holdings in the technology sector.

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