Majority-owned by EMC, virtualization trailblazer VMware also beat Wall Street's estimates in its second-quarter results earlier this month.
Additionally, VMware announced the $1 billion acquisition of Nicira earlier this month, which is seen as boosting its network virtualization credentials.
Another key player in the push towards cloud computing, VMware has seen its shares climb 9.46% this year to reach $91.14. Topeka's White, however, has a 12-month price target of $120 on the company."This equates to a straight P/E of 38x our Calendar Year 13 EPS estimate," he explained, in a note. "We believe the market will be willing to pay such a multiple for an industry leader that has grown EPS by 39% per year for five years." Prompted by its strong second-quarter results, Drexel Hamilton also upgraded VMware from 'hold' to 'buy' with a $110 price target recently, noting that the company is performing well, despite currency headwinds.