We reaffirm our long-term Neutral recommendation on
Citrix Systems Inc.
). The company reported strong financial results for the second
quarter of 2013. Both revenues and net income outpaced the Zacks
Consensus Estimate. Management raised its financial guidance for
Why Kept at Neutral?
The global economy is still suffering from fluctuations and is
not completely out of woods. Various geo-political concerns in
the European, African and Middle East countries have slowed the
momentum of economic recovery. This may make Citrix's near-term
Nevertheless, we believe that the global trend toward
virtualization and cloud computing will facilitate Citrix to keep
up its momentumin the long term. In our view, business
fundamentals of the company remain intriguing as the corporate
spending on IT is expected to rise globally in the future. The
newly launched XenMobile is gaining huge market traction in the
highly lucrative enterprise mobility segment.
Citrix is concentrating on three broad markets: Desktop
virtualization, Cloud Infrastructure and networking, and
Collaboration and sharing. As desktop virtualization has become
the top priority for any IT set-up, Citrix is continuously
introducing innovative products to facilitate business
flexibility, security and centralized management system.
Meanwhile, the stock price has soared nearly 32.5% over the
last year. We believe that Citrix is currently fairly valued. The
company is also taking several steps to expand globally and
launch various state-of-the-art products.
Other Stocks to Consider
Citrix Systems currently has a Zacks Rank #3 (Hold). However,
stocks in this industry which are worth a look are
Adobe Systems Inc.
Dealertrack Technologies Inc.
Advent Software Inc.
). While Dealertrack currently carries a Zacks Rank #1 (Strong
Buy) both Adobe and Advent have a Zacks Rank #2 (Buy).
ADOBE SYSTEMS (ADBE): Free Stock Analysis
ADVENT SOFTWARE (ADVS): Free Stock Analysis
CITRIX SYS INC (CTXS): Free Stock Analysis
DEALERTRACK HLD (TRAK): Free Stock Analysis
To read this article on Zacks.com click here.