Citrix Systems (CTXS) Stock Price Target Raised at Credit Suisse
NEW YORK (TheStreet) -- Credit Suisse raised its price target on Citrix Systems to $100 from $95 on Monday. The firm maintained its "outperform" rating on the stock.
The Fort Lauderdale, FL-based software company will issue 2016 guidance and the results of its ongoing strategic reviews in mid-November, Credit Suisse said.
"We expect Citrix to announce (1) the spin-out of its GoTo division and (2) further operational changes (including the divestiture/shutdown of subscale businesses) to further boost margins-the combination of which will drive meaningful upside to the stock," the firm said.
The combination of a spin-off of GoTo and company restructuring could drive a share price of $99.64, Credit Suisse added.
Shares of Citrix were up by 1.01% to $82.93 in late afternoon trading on Monday.
Separately, TheStreet Ratings team rates CITRIX SYSTEMS INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
We rate CITRIX SYSTEMS INC (CTXS) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, increase in net income, good cash flow from operations and growth in earnings per share. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 18.8%. Since the same quarter one year prior, revenues slightly increased by 7.2%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 29.61% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, CTXS should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Software industry. The net income increased by 17.6% when compared to the same quarter one year prior, going from $47.53 million to $55.93 million.
- Net operating cash flow has significantly increased by 58.28% to $259.80 million when compared to the same quarter last year. In addition, CITRIX SYSTEMS INC has also vastly surpassed the industry average cash flow growth rate of -11.94%.
- CITRIX SYSTEMS INC has improved earnings per share by 20.7% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, CITRIX SYSTEMS INC reported lower earnings of $1.48 versus $1.81 in the prior year. This year, the market expects an improvement in earnings ($3.88 versus $1.48).
- You can view the full analysis from the report here: CTXS