VMware shares performances continues to improve: today, one week after IPO, VMW is still raising, surpassing $66 during the day and closing at $65.99, achieving another 15% of growth.
Despite shares value at IPO was $29, financial analysts at Barron’s say that current price is still cheap:
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By the way, the pre-IPO excitement contrasts with that leading up to the initial offering of Google, which had to cut the price of its shares. Whereas Google shares gained 18% on the first day of trading, VMware moved up 76%. I suspect that more than a few people who skipped buying GOOG in the early going were determined not to miss VMware…
Barron’s analysts have same opinion about EMC:
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For one thing, EMC will consolidate VMware’s results on its income statement, meaning it stands to benefit directly from VMware’s strong future. VMware’s profit will rise 59% a year for the next three years, according to Jefferies & Co. analyst Katherine Egbert. And VMware’s 50% annual sales growth could add as much as five percentage points to EMC’s yearly revenue growth, says Sanford Bernstein analyst Toni Sacconaghi…