Multinational information technology solutions firm Citrix Systems (CTXS) has appointed Bob Calderoni, the Chairperson of its Board of Directors, as the interim CEO and President with immediate effect. He succeeds David J. Henshall, who has resigned as President and CEO, and as a Board member.
Headquartered in Florida, the company provides server, application and desktop virtualization, networking, software as a service (SaaS), and cloud computing technologies. It has more than 400,000 clients across the world. (See Citrix stock chart on TipRanks)
Calderoni said, “David played a key role in accelerating our cloud transition and has driven significant improvements in our products, with over a dozen SaaS services actively supporting more than 11 million subscribers.”
Furthermore, for the third quarter ended September 30, Citrix expects to report revenue at the midpoint to the high end of its guidance range of $765 million to $775 million. The company will announce its financial results for the quarter on November 4.
Citrix’s shares were down 2.3%, at the time of writing, in the early trading session on Thursday.
Following the announcement, Citigroup (C) analyst Tyler Radke downgraded the rating on the stock to Hold from Buy and reduced the price target from $140 to $115 (8.5% upside potential).
In a research note to investors, the analyst said, “The sudden departure of CEO David Henshall, just weeks ahead of the Q3 report and analyst day, suggests that the company is unlikely to be sold to a financial buyer and that its long-term targets may be more unachievable with the analyst day pushed out.”
Overall, the stock has a Hold consensus rating based on 1 Buy, 6 Holds and 1 Sell. The average Citrix Systems price target of $105 implies nearly 1% downside potential. Shares have lost 25.6% over the past six months.
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