UPDATE: Citi Downgrades Citrix Systems (CTXS) to Neutral

Citi analyst Tyler Radke downgraded Citrix Systems (NASDAQ: CTXS) from Buy to Neutral with a price target of $115.00 (from $140.00).

The analyst comments "We are downgrading CTXS to Neutral following the sudden departure of CEO David Henshall. The timing of the departure, just weeks ahead of the Q3 report/analyst day, suggests to us that the company is unlikely to be sold to a financial buyer, and long-term targets may be more unachievable with the analyst day pushed out. While the in-line revenue pre-announcement is encouraging vs. the last two revenue misses, this is on a lower bar and it’s unclear if it’s driven by fundamentals vs. accounting. Our prior Buy thesis was predicated on the view that the market had under-appreciated CTXS’ long-term stickiness and profitability potential. The stock is flat A/H, but we see a much less appealing risk/reward with fewer near-term catalysts to the value-creation story and increasing competitive concerns (MSFT Windows 11/365). With lower confidence in medium/long-term financial targets, we move our target price to $115, implying 14x CY22E EV/FCF."

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 $105.96 yesterday.

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