Tactically Add to VMware (NYSE:VMW) Says UBS (NYSE:UBS)

UBS (NYSE:UBS) recommends tactically adding to VMware (NYSE:VMW) in the quarter, as a defensive posture is employed.

UBS said, "In conjunction with our 2011 software playbook we’re raising our PT to $114 by rolling forward our 30x target multiple to our FY12e FCF/sh of $3.79. Rolling to FY12 estimates is consistent with the PT methodology of the rest of our coverage universe. In our 2011 play book we advocate playing defense in CQ1 and using the quarter to tactically add to 2011’s best positioned names like VMW."

UBS maintains a "Buy" rating on VMware, which closed Friday at $94.79, gaining $0.25, or 0.26 percent. UBS raised their price target on them from $100 to $114. VMare reached their 52-week high on Friday.