Needham & Company Upgrades Citrix Systems (CTXS) to Buy; Believe There Remains Material Upside

Needham & Company upgraded Citrix Systems (NASDAQ: CTXS) to Buy with a price target of $85.00.

Needham analyst says, "We missed the early recovery in shares from the mid-50s range, but believe there remains material upside from the current $65 level. Our upgrade is based on conversations we’ve had with key CTXS partners who tell us spending on data center projects remains strong, despite the continued overhang of macro IT spending concerns. It is our view that CTXS and VMW are more resilient than other vendors in the current macro environment due to the strategic nature of their technologies, which support cloud, virtualization, SaaS and networking. Specifically in the case of CTXS, we believe shares were oversold on macro concerns, currently trading at 4x EV/CY12 revenue and 20x CY12 P/E. In our view, investors may take confidence from recent results from EMC (NYSE: EMC), VMWare (NYSE: VMW), Checkpoint Software (Nasdaq: CHKP) and others which suggest strategic spending categories such as data center refresh (and security for CHKP) remain high-priority."

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 $64.50 yesterday.

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Coherent (COHR) PT Raised to $420 at Needham
• Nu Holdings (Nubank) (NU) PT Raised to $19 at Needham
• Needham Reiterates Buy Rating on Lucid Diagnostics Inc (LUCD)