Watch stocks you care about
The single, easiest way to keep track of all the stocks that matter...
Your own personalized stock watchlist!
It's a 100% FREE Motley Fool service...
While Fools should generally take the opinion of Wall Street with a grain of salt, it's not a bad idea to take a closer look at particularly stock-shaking upgrades and downgrades -- just in case their reasoning behind the call makes sense.
What: Shares of VMware, (NYSE: VMW ) edged up slightly today after Citigroup upgraded the virtualization software specialist from Neutral to Buy.
So what: Along with the upgrade, analyst Walter Pritchard boosted his price target to $120 (from $87), 22% worth of upside to yesterday's close. While value investors might be turned off by VMware's sharp run-up in recent months, Pritchard believes there's plenty of room to run given his view of better-than-expected growth going forward.
Now what: Citigroup expects VMware's double-digit growth to accelerate 2014. "Our checks with resellers, recent survey work as well as deeper modeling suggest 2H13 growth trends remain sustainable into 1H14," Pritchard noted. "ELAs cycle appears more diffused than we estimated, while vSphere capacity / pricing is stable and vCloud management tools penetration is still low, but improving. Lastly, hiring plans in S&M look bullish." When you couple those positive operating trends with VMware's rock-solid financial position, it's pretty tough to disagree with Citigroup's upgrade.
More awesome ways to go for growth
They said it couldn't be done. But David Gardner has proved them wrong time, and time, and time again with stock returns like 926%, 2,239%, and 4,371%. In fact, just recently one of his favorite stocks became a 100-bagger. And he's ready to do it again. You can uncover his scientific approach to crushing the market and his carefully chosen 6 picks for ultimate growth instantly, because he's making this premium report free for you today. Click here now for access.