VMWare ( VMW) has a $125 price target from Goldman, a 40% premium to its current price. The company is the largest global vendor of virtualization software for server operating systems. Over 80% of the company is owned by storage technology firm EMC, which is also on Goldman's current "buy" list. In the third quarter, VMWare reported that revenue jumped 32%, while net income doubled to $178 million, or 41 cents per share. VMWare's shares have appreciated a mere 0.5% this year, but over the past three years, they have an average annual return of a whopping 67%. The company has a $40 billion market valuation. >>To see these stocks in action, visit the 9 Top Goldman Sachs Stocks for 2012 portfolio on Stockpickr.
Aeroflex (ARX) surged more than 25% to a one-year high of $10.47 on Tuesday after British aerospace and defense supplier Cobham announced it would purchase the U.S. communications equipment manufacturer for $920 million.
Acquisitive U.K. aerospace company Cobham on Tuesday agreed to buy Plainview, N.Y-based Aeroflex Holding for $1.5 billion in cash and debt to further expand its communications business and offer new markets for the target's products.
Shares of Aeroflex Holding (ARX) are up over 24% in pre-market trade after it was announced that the wireless communications firm entered into a merger agreement with U.K.-listed Cobham in a deal valued at $920 million.