Shares of tech-security company VMWare (VMW - Get Report) dropped on Friday after receiving a post-deal target price cut from Raymond James analyst Michael Turits, who lowered his one-year forecast on the stock to reflect what he sees as moderating third-quarter sales.
Shares of VMWare dropped 7.82% to $136.57 Friday after Turits dropped his 12-month price target to $185 from $206 on expectations of lighter third-quarter guidance as well as an expected drop in licensing revenue.
The moves come in the wake of VMWare's announcement on Thursday that it was acquiring both Pivotal Software (PVTL - Get Report) and Carbon Black (CBLK - Get Report) , in deals with a combined enterprise value of $4.8 billion - and also the release of its second-quarter earnings.
Turits did keep his outperform rating however, noting that VMware's growth remains "impressive." The analyst also noted that the acquisitions of Pivotal and Carbon Black may not be "transformative" but are "logically incremental" and made with "reasonable valuations."
Pivotal shares were up 8.58% at $14.88 on Friday, while shares of Carbon Black were up 6.2% at $26.02.