Raymond James re-initiates VMware(VMW:NYE)with an Outperform rating

STA Research
by: STA Research

Raymond James Financial analyst Simon Leopold re-initiates VMware with an Outperform rating and $175 target on the stock.

Stocktargetadvisor has a average target of $166 and a consensus Hold rating on the stock.

STA Research’s analysis of the stock is Bullish with a score of 8.3 out of 10, where 0 is very bearish and 10 very bullish.

 

What to like

:
High market capitalization
This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.
Superior risk adjusted returns
This stock has performed well, on a risk adjusted basis, compared to its sector peers(for a hold period of at least 12 months) and is in the top quartile.
Superior total returns
The stock has outperformed its sector peers on average annual total returns basis in the past 5 years (for a hold period of at least 12 months) and is in the top quartile.
Superior return on equity
The company management has delivered better return on equity in the most recent 4 quarters then its peers, placing it in the top quartile.
Superior capital utilization
The company management has delivered better return on invested capital in the most recent 4 quarters than its peers, placing it in the top quartile.
Superior return on assets
The company management has delivered better return on assets in the most recent 4 quarters than its peers, placing it in the top quartile.
Positive cash flow
The company had positive total cash flow in the most recent four quarters.
Positive free cash flow
The company had positive total free cash flow in the most recent four quarters.
Underpriced on free cash flow basis
The stock is trading low compared to its peers on a price to free cash flow basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.
Superior Earnings Growth
This stock has shown top quartile earnings growth in the previous 5 years compared to its sector.

 

What to not like:

Overpriced on free cash flow basis
The stock is trading high compared to its peers on a price to free cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.
Low Revenue Growth
This stock has shown below median revenue growth in the previous 5 years compared to its sector

 

Leave a Reply

Your email address will not be published.