Piper Sandler analyst James Fish lowered the firm’s price target on VMware (VMW) to $125 from $142.50 and keeps a Neutral rating on the shares. The VMware-Broadcom (AVGO) deal has received European and U.K. pushback over the last year due to anti-competitive concerns related to hardware-software interoperability, the analyst tells investors in a research note. The firm says the most logical outcome from any further regulatory pushback would be for Broadcom to divest the scrutinized hardware assets in favor of "stickier, higher margin" software in VMware. However, until further clarity around potential remedies are made, it is more appropriate at this time to move towards a "standalone" valuation for VMware of $125 per share, contends Piper.
Published first on TheFly
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