Citrix Sytems shares rise on strong 1st-qtr results

giovedì 30 aprile 2009 19:09
 

 April 30 (Reuters) - Shares of Citrix Systems Inc (CTXS.O: Quotazione)
rose more than 14 percent on Thursday, as investors cheered the
company's strong quarterly results and cost cutting efforts,
prompting at least 5 brokerages to hike their price targets on
the stock.
 In a research note to clients, Citigroup said Citrix was
hopeful that the domestic market had normalized and visibility
should improve going forward, albeit at a lower level of
demand.
 The company, which develops virtualization software that
allows a single computer to act like many "virtual" machines,
on Wednesday posted a quarterly profit that beat estimates by a
cent, while revenue topped market expectations by $10 million.
[ID:nBNG384706]
 "Investors should be encouraged by the company's March
quarter, as CTXS demonstrated nice execution and continuing
cost controls," FBR Capital Markets said.
 However, FBR remained cautious on Citrix's shares at
current levels, saying, "Although we remain fans of the Citrix
story and believe the company is well positioned for long-term
growth, we remain on the sidelines as the CTXS ship could be
steering through some very rough waters over the next few
quarters."
 On Wednesday, Citrix said it expects second-quarter revenue
to be flat to slightly down.
 Shares of the Fort Lauderdale, Florida-based company were
up more than 10 percent at $28.32 in afternoon trade on Nasdaq.
They touche a high of $29.40 earlier in the session.
 The following table lists the brokerages and their
price-target changes and rating on the company:
 BROKERAGE           RATING            PRICE TARGET
                            New          Old
 Citigroup            Hold           $27          $25
 RBC Capital Markets  Sector Perform $30          $23
 FBR Capital Markets  Market Perform $26          $22
 Jefferies & Co       Hold           $25          $20
 Canaccord Adams      Hold           $26          $24
 (Reporting by Sayantani Ghosh in Bangalore; Editing by Anne
Pallivathuckal, Himani Sarkar)