Wall Street analysts on VMware stock
In the virtualization space, VMware (VMW) faces stiff competition from Microsoft’s (MSFT) Hyper-V, Citrix Systems’ (CTXS) Xen, and Red Hat’s (RHT) RHEV (Red Hat Enterprise Virtualization) for desktops and server virtualization platforms.
To understand the outlook for VMware, we have to take a look at select market-centric views and metrics, starting with analysts’ views of the company.
As the graph above shows, of the 34 analysts covering VMware, 50% have given it “hold” recommendations as of April 19, 2017, and 50% have given it “buy” recommendations. There are no “sell” recommendations on the stock.
VMware’s price performance
VMware’s stock price movement during the past month has been slightly negative, with the stock having fallen ~0.85% as of April 19. However, in the past year, VMware has returned ~77% to its shareholders.
Once the uncertainties regarding VMware’s ownership and functionality became clear after Dell finished its purchase of EMC, the market’s outlook toward the company also improved. This improved market sentiment has been reflected in VMW’s strong upward movement in the last year.
Earlier, we discussed the rising price targets for VMware stock from Drexel Hamilton and Jeffries. Wall Street’s consensus target price for VMware is $92.79 per share. The stock’s median target price was $95 on April 19. VMware’s closing price was $91.81 on the same day.
Investors looking to gain exposure to the software space can consider investing in the PowerShares QQQ Trust, Series 1 ETF (QQQ), which invests ~27% of its holdings in the application software space.