Morgan Stanley Comments on Citrix Systems

Morgan Stanley has published a report on Citrix Systems CTXS. In the report, Morgan Stanley wrote, " Look for a solid Q2 driven by XenDesktop (XD) and Netscaler, with Q2 at least in line with our lic./rev./EPS ests of $174M / $527M / $0.56, and cons. rev./EPS of $523M / $0.55. CTXS has been beating the high end of guidance which is $525M and $0.55, so expects are likely higher. Our checks point to NetScaler strength, solid XD and our July CIO survey indicated that Virtual Desktop penetration should double over the next year. While rev. growth likely decelerates in Q2 off tough comps, and CTXS will be conservative with the Q3 guide, Q3 comps are easier, the years are now more back end loaded and we believe investors will want to own CTXS for 2H." Morgan Stanley rated Citrix Systems an Equal-weight with no price target given. Citrix closed Monday at $74.48.