Citrix Systems "outperform," target price reduced

06/25/08 - RBC Capital Markets

NEW YORK, June 25 (newratings.com) - Analysts at RBC Capital Markets maintain their "outperform" rating on Citrix Systems Inc (CTXS), while reducing their estimates for the company. The target price has been reduced from $41 to $36.

In a research note published this morning, the analysts mention that the XenServer sales estimates for 2008 and 2009 have been reduced from $45 million to $32 million and from $181 million to $110 million, respectively. The performance of Citrix Systems’ two key growth drivers, XenServer and NetScaler, is likely to be sluggish in the short term, the analysts add. A rebound in the XenServer product is unlikely in the near future, since the challenging macro environment may continue to have a negative impact until 2009, RBC Capital Markets says. The EPS estimate for FY09 has been reduced from $2.04 to $1.98.