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NEW YORK (TheStreet) -- VMware (VMW) - Get VMware, Inc. Report stock was upgraded to "buy" from "hold" at DrexelHamilton on Tuesday. The firm maintained its $73 price target on the stock.

Drexel upgraded the Palo Alto-based virtual infrastructure company after "the plethora of rating downgrades from the Street last week," the firm said.

VMware reported earnings of $1.02 a share for the third quarter last week, above analysts' estimates of $1 a share for the quarter. Revenue grew by 9.9% year over year to $1.67 billion for the quarter, compared to analysts' estimates of $1.66 billion.

"Since early 2013, we have been on the sidelines as it relates to VMware's stock; however, we believe the valuation is now extremely compelling at 11x our CY:16 EPS projection (ex-cash) and more than reflects the company's portfolio transition," Drexel Hamilton said, adding that VMware stock reached the lowest P/E since the company's IPO in August 2007.

Shares of VMware were up by 1.19% to $60.45 at the start of trading on Tuesday morning.

Separately, TheStreet Ratings team rates VMWARE INC as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:

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TheStreet Recommends

We rate VMWARE INC (VMW) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and increase in net income. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow and a generally disappointing performance in the stock itself.

You can view the full analysis from the report here: VMW

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