UPDATE: Citigroup Raises PT to $11.50 on Polycom, Maintains Neutral on Ambitious Operating Goals

Citigroup reiterated its Neutral rating on Polycom

and raised its price target from $10 to $11.50. Citigroup commented, "In total, PLCM believes it now addresses a $7.6bln market growing 16% CAGR to $11.8bln over next 3 years. Mgt highlighted that much of incremental TAM from VCaaS is greenfield opportunity w/fragmented suppliers that do not currently offer end-toend solutions. Longer-term operating margin goal of ~20% may be achievable, but is in our view an ambitious goal relative to recent 13% level and will require significant adoption of software-based solutions, tightly controlled op ex levels, and most importantly – significant time for new products to materially impact P&L." Polycom closed at $10.30 on Tuesday.