Morgan Stanley Overweight On VMware

Morgan Stanley is out with a research report on VMware VMW and it has an Overweight rating and a $125 price target on shares. In a note to clients, Morgan Stanley writes, "While Sept. Qs in our universe are always back end loaded and the macro is coming up in every discussion, several conclusions are emerging; a) VMW has seen limited macro disruption, with several very large partners tracking ahead of plan QTD, b) ELAs renewals and new orders remain strong, and ELAs should increase as a % of billings YoY in Q3—while large deals generally are improving, c) Fin. Services and Europe have remained resilient, d) the virtual desktop biz has continued to accelerate — and we should get positive proof points at the Analyst Day, e) vSphere and View 5.0 are being viewed as a strong releases, but custs./partners expect little impact pos. or negative from a pricing standpoint. Net, with product catalysts, sub-seasonal ests. and secular momentum, VMW is one of the best positioned co.'s in our universe and we remain buyers." Shares of VMW are up $2.98 to $91.48.