UPDATE: Morgan Stanley Raises PT on VMware to $125

Morgan Stanley is out with its report today on VMware VMW, raising its PT from $114 to $125. In a note to clients, Morgan Stanley writes, "With a clean Q across key metrics and acceleration YoY in rev. FCF and EPS on tough comps, Q2 was very strong. VMW is one of only a few co's growing revenue at 30%+ and is doing so at almost $4B, making it a must own secular winner. Forward ests. move at least 4-5% higher and still look low while our new PT of $125 (up from $114) is based on a material discount to growth. As VMW continues to become more strategic, our $150 bull case looks more likely." At the time of posting, shares of VMW were trading pre-market at $110.59, up 4.31% from Tuesday's close.