VMware's (NYSE:VMW) Recent Drop a Buying Opportunity Says Susquehanna

Saying they see potential in increased licensing revenue and FCF growth for VMware (NYSE:VMW), Susquehanna believes their recent drop in share price is a buying opportunity.

Susquehanna, noted "For Q4, we see the potential for meaningful upside to license revenue and notable acceleration in FCF growth, predominately driven by growth in the number of ELA contracts being signed. We reiterate our Positive rating and $110 price target."

They have a full year 2010 and 2011 EPS estimate on VMWare of $1.49 and $1.85.

Susquenhanna reiterates their "Buy" rating on VMware (VMW), which was trading at $88.40, down $2.26, 2.49 percent, as of 1:17 PM EST. Susquehanna has a price target on VMWare of $110.