SAN FRANCISCO -- Investors still itching to get in on VMware(VMW Quote - Cramer on VMW - Stock Picks) need little encouragement to drive up the only pure-play virtualization stock.
The stock rocketed 10.9%, or $7.21, to $73.20 midday Wednesday on an analyst's new price target, making for a two-day advance of 28% from Monday's $57.25 close. Jefferies & Co. analyst Katherine Egbert raised her price target on VMware to $74 from $42, reflecting a bump in her 2008 EPS estimate to $1.05, from 84 cents, citing 49% top-line growth expectations for the next three years. Egbert, however, expressing caution in a note wrote, "We believe investors would do well to await actual quarterly financial information before building in additional revenue, margin, or EPS growth." VMware, which went public on Aug. 13, priced at $29 and closed up 76% at $51 on its first trading day.


