Virtualization for Performance Testing? (Score 1)

A current topic of debate at work is whether or not Virtualized Machines (VM) can be reliably used for performance testing. Specifically, can VMs be used to host LoadRunner test software to generate load against the targeted test system? The current answer seems to be that virtualization is an acceptable host in a single tenant model where the host server is dedicated to performance testing and is not over-subscribed.