MKM Partners Raises Price Target on Citrix Systems (CTXS) to $98 Following Strong 1Q Results
MKM Partners reiterated a Buy rating on Citrix Systems (NASDAQ: CTXS), and raised the price target to $98.00 (from $93.00), following the company's 1Q earnings report. EPS of $1.18 beat consensus of $0.92. Revenue for the quarter also beat consensus with $826mn compared to the consensus of $787mn. The revenue beat was driven primarily by Product License revenues which grew 10% Y/Y, the first double-digit growth in about three years.
Analyst Kevin Buttigieg commented, "1Q16 results again showed progress, with sizable upside to margins and the largest revenue beat since the restructuring began. Much of the revenue upside was from the core Mobile & Desktop business, which is showing continuing improvement around multiple initiatives, but Networking also beat, with strong sales to cloud service providers. 2016 guidance was again raised for EPS behind margin improvements, and while revenue guidance is largely in line, both were characterized as conservative, and are apt to be seen that way by investors after recent execution improvements. We are raising our price target to $98 (from $93), calculated as 18x CY17E EPS."
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Shares of Citrix Systems closed at $80.52 yesterday.