Oppenheimer Has Perform On VMware

Oppenheimer & Co. is out with a research report on VMware VMW after it reported earnings. It has a Perform rating on shares. In a note to clients, Oppenheimer & Co. writes, "VMW reported stellar 2Q results, with upside on all metrics driven by strong market demand. During the quarter VMW achieved record revenue, non-GAAP operating margin and non-GAAP operating cash flows by strength in ELA bookings. VMW continues to see a healthy virtualization market, which is still seeing double-digit growth rates and driven by last week's announcements of Vsphere 5 and its cloud suite solution. While we think a premium is warranted given VMW's execution, market opportunity, and strong cloud-related demand, we remain at Perform given valuation levels (41.5x our higher FY12E EPS of $2.43)." Shares of VMW are up $7.98 in pre-market trading to $114.00, a gain of 7.53%.