Citrix Shares Decline 5% After Lower Earnings, Price-Target Decreases
July 25 2019 - 12:28PM
Dow Jones News
By Dave Sebastian
Shares of Citrix Systems Inc. (CTXS) declined more than 5%
Thursday after the cloud-software company reported lower
second-quarter earnings that missed analysts' estimates.
The company posted a net income of $93.5 million, or 70 cents a
share, compared with $106.8 million, or 73 cents a share, in the
prior year.
Morgan Stanley on Thursday decreased Citrix's price target to
$95 from $102, though it maintained its rating at underweight.
As the company transitions to a subscription-based model, Morgan
Stanley analysts said in a note that there is less visibility in
growth and margin, and free cash flow becomes less clear.
Analysts at Wedbush Securities said in a note Thursday that
Citrix's shift to the subscription-based model presents an
opportunity for longer-term gains.
"In our longer term view, while the model transition will take
time and patience from investors on this name, we believe all the
pieces are generally in place for this cloud transition to manifest
along with modestly improving demand environment which gives us
some confidence on the name going forward," said the analysts, who
decreased Citrix's price target to $95 from $100.
Write to Dave Sebastian at dave.sebastian@wsj.com
(END) Dow Jones Newswires
July 25, 2019 12:13 ET (16:13 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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