Morgan Keegan Reports on Citrix Systems

Morgan Keegan commented on Citrix Systems CTXS in a report released today. In the report, Morgan Keegan was positive in its assessment of the company. Morgan Keegan writes, "Citrix is in the midst of a major product transition from application virtualization to desktop virtualization where intra-quarter execution can lead to wild swings in both stock price as well as perception. Continued solid execution and growth in desktop virtualization amidst a diverse product set in an uncertain macro-economic environment is far from assured. Spending on commercial deployment of desktop virtualization solutions depends on the overall demand for information technology and on the economic health of current and prospective customers. Weak global economic conditions, or a reduction in information technology spending regardless of macro-economic conditions, could adversely impact Citrix's growth and profitability profile reducing its attractiveness as a secular growth story. Citrix's main competitor VMWare (VMW - $79.79, M-S) has a dominant market position in the server virtualization market and could offer desktop virtualization solutions at significant discounts to undercut Citrix. If Citrix fails to quickly respond to the rapidly changing needs of end-customers, its competitive position and business prospects could be harmed." Morgan Keegan currently has an Outperform rating on Citrix and a price target of $97. Shares of Citrix closed at $87.16 on Friday.