BofA/Merrill analyst Kash Rangan raised his price target on VMware (VMW) to $190 and kept his Buy rating, citing his "increased confidence in sustained mid-teens billings growth" as well as its better operating margins of 32% relative to 24% at competitor Red Hat (RHT). Rangan says that the reverse merger at Dell removes the overhang on VMware shares and should increase its valuation multiple in the long term. The analyst also states that his new valuation on the company implies a multiple of 19-times enterprise value to expected FY19 free cash flow, which is still a 15% discount to Red Hat's 22-times because of its slightly lower billings growth, but adds that VMware is still cheaper than Citrix (CTXS) in spite of its faster revenue growth.