Collins Stewart Raises Price Target on Citrix Systems (CTXS), Lack of Visibility Upside
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Price: $103.90 --0%
Rating Summary:
12 Buy, 19 Hold, 6 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
12 Buy, 19 Hold, 6 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Collins Stewart is maintaining its Buy rating on shares of Citrix Systems (NASDAQ: CTXS) while lowering its price target from $95 to $90.00.
The company reported strong results for its second quarter with $531 million in sales and EPS of $0.57, which both topped the Street's and firm's estimates.
The firm notes that the issue in the quarter was that XenDesktop license revenue grew 25 percent year-over-year and the combined Desktop Solutions business only grew license revenues by 10 percent year-over-year, half of the growth in which they experienced last quarter.
Management reaffirmed its full-year desktop solutions revenue growth guidance of 16-18 percent and its FY11 EPS guidance of $2.38-$2.41.
An analyst at Collins Stewart comments, "Citrix is absorbing $0.05 in EPS due to costs associated integrating Cloud.com & Kaviza acquisitions, but kept prior FY EPS guidance which is impressive in our mind."
Collins Stewart lowered its FY11 EPS estimate by $0.04 to $2.41 and raised its FY12 estimate by $0.01 to $2.79.
The firm notes that the price target cut reflects a lack of visibility toward significant upside surprise.
For more ratings news on Citrix Systems click here and for the rating history of Citrix Systems click here.
Shares of Citrix Systems closed at $70.94 yesterday.
The company reported strong results for its second quarter with $531 million in sales and EPS of $0.57, which both topped the Street's and firm's estimates.
The firm notes that the issue in the quarter was that XenDesktop license revenue grew 25 percent year-over-year and the combined Desktop Solutions business only grew license revenues by 10 percent year-over-year, half of the growth in which they experienced last quarter.
Management reaffirmed its full-year desktop solutions revenue growth guidance of 16-18 percent and its FY11 EPS guidance of $2.38-$2.41.
An analyst at Collins Stewart comments, "Citrix is absorbing $0.05 in EPS due to costs associated integrating Cloud.com & Kaviza acquisitions, but kept prior FY EPS guidance which is impressive in our mind."
Collins Stewart lowered its FY11 EPS estimate by $0.04 to $2.41 and raised its FY12 estimate by $0.01 to $2.79.
The firm notes that the price target cut reflects a lack of visibility toward significant upside surprise.
For more ratings news on Citrix Systems click here and for the rating history of Citrix Systems click here.
Shares of Citrix Systems closed at $70.94 yesterday.
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