In a report published Friday, Jefferies analyst Ross MacMillan raised his price target for VMware (VMW) shares to $124 from $114.00. The price increase is based on expectations the company’s virtualized storage solution product vSAN can drive incremental growth. MacMillan also says early feedback from the channel on the product is positive and reiterates a ‘Buy’ rating on the shares of the clouding company.
[via Benzinga] “We believe VMW’s vSAN product can drive incremental growth as it lowers storage cost, simplifies storage management and drives agility”, MacMillan writes. “Early feedback from the channel is positive. We believe vSAN can drive approx. >$200-800M incremental billings and we revise our CY15 estimates upward to reflect this opportunity. Reiterate Buy with a raised $124 target.”
By market close Friday, VMware shares had slipped 0.35% to $106.29. Trading volume of 1.54 million was below its 3-month daily average of 2.35 million.