Morgan Stanley Overweight On Citrix Systems

Morgan Stanley is out with a research report on Citrix Systems Inc CTXS after it reported earnings. It has an Overweight rating and a $88 price target on shares. In a note to clients, Morgan Stanley writes, "With CTXS down 10% in the last day, and 24% since early June, we are buyers of the stock as the secular shift towards desktop virt. (DV) is strengthening, while CTXS should see accelerating Desktop growth in Q3 and Q4. Our conviction is driven by record pipeline levels, large deals strengthening, XenDesktop re-orders accelerating, and Netscaler strength which should together drive further upside to ests. Our CY11/CY12 ests. move higher, are above cons. and still look low. With 30% upside to our price target of $88, which is based on only 1x FCF growth, a discount to comps, we upgrade the stock to Overweight from Equal-weight." Shares of CTXS lost $3.57 yesterday to close at $70.94.