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J.P. Morgan Reiterates Underweight Rating, $56 PT on Citrix Systems Following Synergy 2013 Conference

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In a report published Tuesday, J.P. Morgan analyst John DiFucci reiterated an Underweight rating and $56.00 price target on Citrix Systems (NASDAQ: CTXS).

In the report, J.P. Morgan noted, “We are Underweight shares of CTXS because we believe current valuations assume overly optimistic market adoption rates of desktop virtualization technology. Our bottom-up market model for XenDesktop implies an incremental, yet somewhat limited opportunity for Citrix. We believe that an elusive ROI and cannibalization of its flagship XenApp business will limit the upside that Citrix will realize from the Desktop Virtualization market. We think management has done a commendable job growing the XenDesktop business and its other businesses into market leaders – namely, the GoTo family and NetScaler. However, we think it's time investors take a step back and examine whether the expectations around desktop virtualization will actually translate into outsized growth for Citrix.”

Citrix Systems closed on Friday at $63.43.

Posted-In: J.P. Morgan John DiFucciAnalyst Color Reiteration Analyst Ratings


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