UPDATE: JG Capital Upgrades Citrix Systems Ahead of Q2:13 Report

In a report published Thursday, JG Capital analyst Jeff Gaggin upgraded Citrix Systems CTXS from Neutral to Overweight, and named a $78.00 price target.

In the report, JG Capital noted, “CTXS reports tonight and we are expecting in-line results and guidance. We believe CTXS is likely to meet their desktop license growth guidance of 10% y/y for the June qtr, helped by better seasonality, closing slipped deals from the Mar qtr, the introduction of XD 7 and a benefit from the Zenprise acquisition. For the June quarter, the implied q/q license revenue increase is $18-19M. We think XenMobile MDM (Zenprise) will add $5M in the June qtr with the balance coming from core, which we don't think is a stretch. We also think U.S. Federal IT spending is improving in general so that could help Q3E. We upgrade CTXS to Overweight with a price target of $78, believing business trends in desktop will improve in 2H and into 2014.”

Citrix Systems closed on Wednesday at $67.49.