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Pro Analysis

Sell Citrix on lackluster future growth, top analyst says

Citrix
Source: Citrix

UBS' Brent Thill, one of Wall Street's top analysts, lowered his rating on Citrix Systems to sell from neutral, predicting investors will be less enthusiastic about the company's slower growth rate in the future.

The software company in July announced plans to merge its GoTo cloud business segment into its competitor LogMeIn.

"We think the next leg of the story will prove more difficult, as investor attention shifts back towards the core workspace services business," Thill wrote in a note to clients Monday.

"While in our view this provides a more favourable outcome than an outright spin, we note GoTo was CTXS' fastest growing segment, and that core CTXS growth is likely to be challenged going forward."

Thill's picks have a 12 percent one-year average return with a 71 percent success rate, according to analyst ranking service TipRanks, placing him in the top 1 percent of all Wall Street analysts covering any industry.