Shares of server-software maker
spiked Tuesday after analysts lifted their outlook for the company.
Citrix gained 6.6% to $33.29 midday on volume of 4.2 million shares after Stifel Nicolaus analyst Todd Weller upgraded the Fort Lauderdale, Fla.-based company to a buy based on the view that recent declines in the share price create an upside opportunity.
He projected a 12-month target price of $39 based on 22 times his EPS estimate of $1.75 for 2008, assuming an upside potential of 25% and a 10% downside risk. The EPS estimate is in line with the consensus estimate of Thomson First Call analysts.
Additionally, Credit Suisse analyst Philip Winslow raised his rating Tuesday to outperform, with a target price of $43.
The company is nearing completion of an investigation into errors made in connection with stock option granting practices for the years 1996 through 2006.
A price drop of 9% since Citrix
reported first-quarter 2007 earnings has been driven by the company's cancellation of two investor conferences scheduled for this week and next, Weller said.
"We are comfortable that this is a function of executive scheduling conflicts, as opposed to an indication of something negative occurring with the company," he said.
Citrix CFO David Henshall did present at an investor conference May 8.
Weller's outlook is based on Citrix's success with the Platinum version of its Presentation Server and a price increase on the Enterprise edition, among other factors.
As a licensee of
, Citrix's Presentation Server manages Windows server operating systems, including the upcoming Windows Server 2008.