UPDATE: Citi Lowers PT on BMC Software to $36

Citi is out with its report today on BMC Software BMC, lowering its PT from $39 to $36. In its report, Citi writes, "We believe stock is washed out in the mid-30s based on valuation support at 6-7x EV/FCF on our new estimates. However we don't see a catalyst to the upside as growth is unimpressive and 'fix' of sales execution will likely take multiple quarters. Also, we view it as possible that cash flow doesn't grow in FY13 or even FY14. As a result of lower near-term ESM growth (FY12-FY15), we are lowering our price target from $39 to $36." Citi maintains Neutral on BMC. At the time of posting, shares of BMC were trading pre-market at $35.95, down 6.91% from Wednesday's close.