Goldman Sachs Maintains Buy Rating On VMware

According to Goldman Sachs, VMware VMW will report 2Q2011 results on Tuesday, July 19, after the close. Goldman Sachs said that it is modeling total 2Q revenue and EPS of $875 mn (Street: $873mn) and $0.47 (Street: $0.47). “We continue to view VMware as one the key beneficiaries of the shift to cloud computing and thus maintain our Buy rating. VMW trades at 28X/23X CY11E/CY12E CFO/share. Our 12- month price target of $130 is based on based on an equal weighting of our DCF, EV/bookings and P/CFO analysis.” VMware closed yesterday at $102.67.