Nomura Securities Starts Citrix Systems (CTXS) at Neutral; All About Desktop Virtualization

Nomura Securities initiates coverage on Citrix Systems (NASDAQ: CTXS) with a Neutral. PT $86.00.

Analyst, Rick Sherlund, said, "We believe Citrix’s desktop virtualization business is already highly valued by the Street, despite unproven demand and slower-than-expected penetration rates. Our sum-of-the-parts analysis suggests desktop virtualization accounts for over 40% of the company’s equity valuation—this line of business currently appears to be handsomely rewarded at about 75x 2012 estimated earnings and 16x revenues. Desktop virtualization remains key to Citrix’s story, yet we are concerned about the enterprise adoption rate given the more difficult ROI due to the need for more upfront investment and broader buy-in versus server virtualization."

For an analyst ratings summary and ratings history on Citrix Systems click here. For more ratings news on Citrix Systems click here.

Shares of Citrix Systems closed at $80.50 yesterday.

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