CEO Change, Business Conditions, Spin-Off Possibility Factor Into Analyst Views on VMWare

7/9 - "Several analysts this morning actually asserted that replacing Greene with former Microsoft exec Paul Maritz should be considered a positive development for the company. “It was not a completely unexpected move,” writes Citigroup’s Brent Thill. “We believe Greene did an admirable job taking the company from zero to over $1.3 billion in 2007 revenue, but a different leader seems needed for the next leg in VMW’s story.”

"All across the Street, analysts slashed estimates on the company. Lehman’s Israel Hernandez, for instance, dropped his target on the stock to $41, from $75, and gave four reasons for caution on the stock, even at the newly reduced share price: Guidance may be too high given macro weakness; building competitive pressures; additional senior management changes; the impact on employee morale from founder Greene’s departure."

"Citi’s Thill, who m...