Goldman Sachs Comments on VMware Inc

Goldman Sachs has published a report on VMware Inc. VMW reiterating their BUY rating. In the report, Goldman Sachs wrote, "We see VMware as in the pole position to capitalize on the biggest change in computing trends since the industry moved from mainframe to client server and we reiterate our Buy rating. We are raising our 12-month price target to $140 from $130 as our EPS and cash flow forecasts move higher. Our price target is based on an equal weighting of our DCF, EV/bookings and P/CFO analysis. At $106, VMware is trading at 24X and 20X our new CY11 and CY12 CFO forecasts of $4.50 and $5.25 (prior $3.71 and $4.55)." Goldman Sachs rated VMware a BUY with a price target of $140.00. VMware closed Tuesday at $106.02.