Nomura Securities upgrades CTXS from Neutral to Buy
While having been cautious given concerns about the core desktop virtualization business they now feel valuation suggests a favorable risk/reward.
"Positives are that the stock sells for only 4.4X recurring maintenance and subscription revenues, approaching the level at which private equity could potentially get interested. We think the low valuation provides some downside protection and there are a number of things that could go right that are not likely reflected in the share price. The shares trade at 10.5x EV/uFCF on our 2014 estimate and at a P/E of 15.7x (ex-cash of $8.53 per share) and 4.4XTTM maintenance plus SaaS subscription revenues. We Like risk/reward. FY14EPS at $2.87; FY15EPS at $3.18."