Citrix Systems CTXS recently announced that Netherlands-based Vitens is leveraging its Citrix Virtual Apps and desktop service as a part of its transition to cloud. This will enable Vitens to deliver a seamless work from home experience for its employees amid the ongoing coronavirus crisis.
Vitens is one of the largest utility companies in Netherlands and is engaged in providing potable water.
Citrix Virtual Apps and Desktops solution will enable Vitens to manage as well as deploy apps and desktops in hybrid cloud environments and deploy new cloud-hosted workloads online. The solution also helps IT to keep a tab on security and performance analytics to observe user activity and session response time.
Citrix Systems, Inc. Price and Consensus
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Citrix Virtual Apps and Desktops forms a part of Citrix workspace solutions portfolio, which also includes solutions like Citrix Endpoint Management, Citrix SD-WAN, Citrix Secure Workplace Access. Citrix boasts more than 400,000-strong clientele base that leverages its wide-ranging digital workspace and security solutions.
Pandemic-triggered Demand Bodes Well
According to Mordor Intelligence data, the desktop virtualization market is projected to reach $12.29 billion by 2026 from $6.7 billion in 2020 at a CAGR of 10.6% from 2021 to 2026.
Due to the ongoing pandemic and ensuing work from home and online learning trends, the demand for secure remote work solutions is witnessing steady momentum. These trends are unlikely to abate any time soon as the global vaccine rollout is expected to be a time-consuming affair.
Worldwide, companies have started to adopt a hybrid work culture, which is expected to drive demand for digital workspace solutions in the long haul. Apart from COVID-19 crisis, fast proliferation of cloud computing along with rise in Bring Your Own Devices (BYOD) at workplace trend is driving demand for desktop virtualisation solutions’ market, added the report.
Consequently, the demand for Citrix’s desktop virtualization offerings is likely to witness sustained traction as centralized management of employee desktops optimizes security, control and fosters cost savings for businesses.
In March 2021, Citrix acquired Wrike for $2.25 billion to augment its unified digital workspace solutions’ portfolio. Wrike is engaged in providing businesses with software as a service (SaaS) based collaborative work management solutions.
However, increasing investments on portfolio expansion and product enhancements amid stiff competition from VMware's Horizon and Amazon’s AMZN Amazon WorkSpaces are likely to limit margin expansion, at least in the near term.
Zacks Rank & Stocks to Consider
Citrix currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader sector are Cadence Design Systems CDNS and Micron MU, both flaunting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth rate for Cadence and Micron is currently pegged at 11.1% and 15.7%, respectively.
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