Why Citrix Systems Shares Failed To Impress Markets?

  • Software maker Citrix Systems Inc CTXS shockingly emerged as the biggest S&P 500 loser despite the pandemic triggered lockdown, Bloomberg reports.
  • The stock recently got a shot in the arm on activist hedge fund Elliott Management Corp's involvement. The S&P 500 has doubled since it bottomed out on March 23, 2020. Citrix, on the other hand, has lost about 11%.
  • Citrix surged in Q1 FY20 aided by the pandemic but failed to sustain the momentum.
  • Barclays downgraded its rating following Q2 miss and weaker Q3 outlook citing "a longer and more complex transition" to the "software-as-a-service" model. Morgan Stanley, RBC Capital, slashed their price targets on the stock. The stock has lost 16.8% year-to-date.
  • Contrastingly, e-commerce company Etsy Inc ETSY and pool supplies distributor Pool Corp POOL have notched triple-digit gains since the S&P 500's bottom. While video game company Take-Two Interactive Software Inc TTWO gained just 40%, underperforming the index.
  • Morningstar analyst Dan Romanoff believes Citrix still makes a product that solves a business problem for many consumers and is looking forward to the October analyst meet for more details around its longer-term model.
  • Price Action: CTXS shares traded lower by 0.49% at $107.77 on the last check Friday.
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