Citrix Systems (CTXS) Current Quarter Progressing Solidly
Analysts at MKM Partners upgrade Citrix Systems Inc (NASDAQ: CTXS) to "neutral." The target price for CTXS has been raised from $34 to $47.
According to MKM Partners, CTXS’ quarter “is tracking in line with expectations, we admittedly misgauged investor expectations in thinking 5% product revenue growth would not sustain the current valuation, and our checks show the current XenDesktop promotion is having continued success with customers.” “In addition, our research shows the company may extend its June deadline promotion date, which would help entrench it even further into its installed base as a candidate for desktop virtualization.” the analysts say.
MKM Partners adds, “Even if the promotion is not extended, we think Citrix will be able to demonstrate to investors that the desktop virtualization market is materializing, although at a measured pace, and investors will remain interested in Citrix as one of the few mid‐cap pure plays in this market, thus providing a floor to Citrix’s valuation. As a result of this floor and investors’ willingness to look beyond 2010 and wait for the future opportunities within desktop virtualization, we are materially raising our fair value estimate.”
