Collins Stewart Reiterates Buy on VMware

Collins Stewart is out with its report today on VMware VMW, reiterating Buy. In its report, Collins Stewart writes, "With VMware's strategic positioning continuing to improve & traction accelerating in mgmt tools & other products, we reiterate our Buy rating (43x our 2012 EPS of $2.50; 27x our 2012 FCF/shr est of $4.04). We note that VMW trades at a fwd PE of ~40x, vs. its historical median of ~45x and only 22x our FY12 FCF estimate of $4.04/shr." Collins Stewart maintains a $108 PT on VMW. At the time of posting, shares of VMW were trading pre-market at $92.39, up 1.85% from Tuesday's close.