The letter said, "Citrix possesses high-value, strategic assets that we believe can be separated from the core 5Workspace Services segment: the GoTo franchise and NetScaler. Such separations would not only be meaningfully accretive to value but also would enable Citrix management to focus on improving the Company's core operational execution."
The activist investor said Citrix's stock price could reach $90 to $100 upon implementing the changes proposed. The stock currently trades around $70 per share after rallying 7 percent on Thursday morning, following the release of Elliot Management's letter.
Elliott Management also said it had hired a consulting firm, two investment banks, a marketing firm, among other experts, to help it understand the company better.
Priced at $70.39 at Thursday's market close, the stock is now trading at about 40 times its pre-share earnings last year, according to data compiled from Bloomberg.
The analysts at Sanford C. Bernsetin & Co. hold an outperform rating and Oppenheimer & Co. maintains a market perform rating. Stifel and Mizuho Securities hold a buy rating.
But not all analysts are convinced. Bloomberg data reveals 48.6% maintain a hold rating, 40.5% of the analysts hold a buy rating, and 10.8% keep a sell rating.
The stock price has climbed more than 10% since the start of the year, and the company has a market capitalization of $10.5 billion.
TheStreet's ratings team rates Citrix Systerms as a hold with a ratings score of C+. The team has this to say about its recommendation:
"We rate CITRIX SYSTEMS INC (CTXS) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks.
"The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income and feeble growth in the company's earnings per share."
You can view the full analysis from the report here: CTXS Ratings Report