RBC Ups Citrix Systems to 'Outperform'

Analyst Sarah Mattson thinks software firm's pipeline remains solid, and new products that ship mid-year suggest upside in 2004

RBC Capital upgraded Citrix Systems (CTXS ) to outperform from sector perform.

Analyst Sarah Mattson says the $143.5 million in revenues, and the adjusted earnings per share came in far above her $125 million revenue and 12 cents earnings per share estimates. She notes large deal closures, a carry-over from January, contributed to the upside. She thinks the pipeline remains solid, and new products that ship mid-year suggest upside in 2004, while Microsoft's launch of Windows 2003 on Friday should prove to be an opportunity vs. a threat.

Mattson raised her 54 cents 2003 earnings per share estimate to 72 cents, and upped the 60 cents 2004 estimate to 78 cents. She thinks Citrix is well positioned to achieve its 2003 estimate, with upside possible in 2004 if newer products gain traction. She raised her $15 target to $21.

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