Analysts Mixed on Citrix (CTXS) Earnings

NEW YORK (TheStreet) -- Analysts are mixed after cloud computing specialist Citrix Systems (CTXS) beat fourth-quarter estimates handily but disappointed with soft guidance.

Private equity firm Robert Baird downgraded the stock to "neutral" from "outperform" with a price target of $64. The company is seeing slower growth and facing increased competition.

Likewise, JMP Securities downgraded the stock to "underperform" from "market perform" with a price target of $45 on lower-than-expected guidance. 

Meanwhile, Drexel Hamilton upgraded Citrix to "buy" from "hold" with a $65 price target, noting the company trades at a steep discount to its peers.

After the bell Wednesday, the Fort Lauderdale-based company announced net income of $1.04 a share on $802 million in revenue. Analysts polled by Thomson Reuters had expected earnings of 98 cents a share, while revenue came in as expected.

Over fiscal 2014, management said net revenue should increase between 8% and 10%, compared to analyst estimates of 11.4% growth. Excluding one-time charges, earnings are expected to range from $2.85 to $2.95 a share, far below the $3.35 previously expected by analysts.

TheStreet Ratings team rates CITRIX SYSTEMS INC as a Hold with a ratings score of C+. The team has this to say about their 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 largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, disappointing return on equity and deteriorating net income."

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