January 24, 2019 / 2:43 PM / 10 months ago

BUZZ-Citrix Systems slides after bleak forecast; analysts uncomfortable on cloud transition

** Networking software company’s shares fall 8 pct to $100 in morning trading

** Stock on track for its worst day in over 3 yrs, a day after co forecast Q1 below est, leading at least 3 brokerages to cut their PTs on the stock

** Co, however, beat qtrly revenue for the 4th straight qtr and EPS for 5 out of 8 times

** Barclays analysts, who cut PT by $1 to $115, say they prefer to stay on the sidelines as they “wait to get more comfortable on the (cloud) transition”

** “While this leap of faith is common in most cloud transition stories, we think Citrix currently lacks ... needed to give investors confidence in the transaction”, MS analysts said in a note titled “Are We Ready To Trust The Cloud Transition?”

** 4 of 19 brokerages rate the stock “buy” or higher, 12 “hold” and 3 “sell” or lower; their median PT is $110

** Stock touched a record high of $116.81 in July 2018 and has since traded below more than 2 pct that point

** Stock up ~6 pct so far this year; it rose ~16 pct in 2018 (Reporting by Vibhuti Sharma in Bengaluru)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below