VMware, Inc. (VMW) has inked a deal with non-profit organization Mitacs. The partnership aims at boosting Applied Research with Canadian Universities, enhancing connectivity, and paving a sustainable path for 6G.
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Shares of the cloud computing and virtualization technology company gained 2.22% on November 25 to close at $118.70. (See VMware stock charts on TipRanks)
Mitacs is well known for its Digital Equity Grid Innovation initiative, aka TETRA, which connects industry with Canadian academic institutions.
Implications of the deal
The collaboration with Mitacs is in-sync with VMware’s Automated Life vision and will usher improvements in applied research, further sketching a sustainable path for 6G.
VMware and Mitacs will also collaborate with the Institute of Electrical and Electronics Engineers’ (IEEE) Future Networks Initiative (FNI). FNI is a technical community of IEEE, which seeks to establish a TETRA research & innovation centre in Montreal.
The IEEE is the world’s largest technical professional organization that works towards advancing technology for the benefit of humanity.
Through the partnership that will leverage IEEE’s “Connecting the Unconnected Challenge program”, researchers will develop Open Grid infrastructure and work towards arriving at solutions to bridge technologies from the satellite, wireless, networks, and cloud industries.
They also aim to offer solutions for affordable internet access.
Management Weighs In
VMware CTO, Kit Colbert, commented, “The path to 6G requires a fundamental re-architecting of the Internet to an Open Grid – one that can be accessed from everywhere and brings immersive apps to everyone.”
He further added, “This calls for significant advancement of physical and digital systems through broad partnerships and true cross-sector collaboration. Our partnership with Mitacs aims to drive this advancement forward, keeping sustainability and digital equity at the heart of our work.”
Analysts Recommendation
Following the results announcement earlier this week, Piper Sandler analyst James Fish decreased the price target to $154 (29.7% upside potential) from $178, and reiterated a Buy rating.
Fish was unimpressed with the overall mixed results and discouraging initial fiscal 2023 margin guidance.
Fish continues to favor the stock based on his expectations of an inflection point in 2023. However, the analyst stated that the stock will remain range-bound in the near term as VMware is stuck between the value and growth buckets.
Consensus among analysts is a Moderate Buy based on 8 Buys and 9 Holds. The average VMware price target of $148 implies 24.68% upside potential to current levels.
TipRanks’ Smart Score
VMW scores a 9 out of 10 on TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations.
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