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UBS Analyst Says "Sell VMware" Stock

If you currently own VMware stock or just work and play in VMware's world, I'm sure you're keeping a watchful eye on their stock price.  The Motley Fool makes it sound like a great buying opportunity, but UBS analyst Heather Bellini dropped her rating of the stock from "Neutral" to "Sell", and she cut her rating on the stock from $21 down to $15.

Over the last 52 weeks, the stock has ranged from a low of $18.30 to a high of $102.74.  VMware stock has been showing support around $17.86 and resistance in the $22.34 range.

Technical indicators for the stock are neutral and S&P does not currently have a STARS rating for VMW.

Bellini says that consensus license growth expectations for the 4th Quarter and 2009 for VMware are “too aggressive” based on her checks on end-market demand.  She cut her estimates for both periods.  Bellini sees VMW at risk of license deal push-outs at the end of the quarter, given that the company tends to have back-end loaded quarters.

VMW closed down to finish off Friday at $18.94.

Published Saturday, November 22, 2008 6:51 AM by David Marshall
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