Wells Fargo Upgrades VMware, Defying Bearish Market Sentiment
Contrary to broad investor concern, VMware, Inc. (NYSE: VMW) seems well-positioned to emerge as the leader in the market for Kubernetes-based, multi-cloud platform solutions, according to Wells Fargo.
Wells Fargo’s Philip Winslow upgrades VMware from Neutral to Outperform, raising the price target from $140 to $180.
Investors have been concerned about the demand for VMware’s virtualization-centric product portfolio being negatively impacted by rising interest in deploying containerized applications into Kubernetes-centric environments, Winslow said in the upgrade note.
He added, however, that the recent acquisitions of Bitnami, Heptio and Pivotal Software Inc (NYSE: PVTL) as well as the VMware Tanzu release will position the company to become a leader in the Kubernetes-based, multi-cloud infrastructure market.
There are several complexities of deploying Kubernetes, especially when managing resources across multiple clouds and in-house datacenters.
VMware is now focusing on “creating a bridge for traditional enterprise datacenters, cloud-native platforms, and public cloud environments to coexist and integrate,” Winslow wrote.
The analyst mentioned the company could leverage its reach of 70 million workloads across 300,000+ customers on its vSphere platform.
This could evolve into a native Kubernetes platform for virtual machines and containers and, combined with the introduction of Tanzu Mission Control, could “solidify VMware’s position as “the” abstraction company for the hybrid-/multi-cloud infrastructure stack,” Winslow said.
Source: Yahoo News