Citrix Systems Inc. shares rallied Tuesday for their best day in nearly two years following a report that two investment firms were considering a joint bid for the cloud-software company.
Citrix CTXS, +12.85% shares had surged as much as 15.6% Tuesday, and were last up 12.2% at $93.88, putting them on track for their best one-day percentage gain since March 17, 2020, when shares finished up 15.1%. With Tuesday’s share move, Citrix has a market cap of $11.72 billion.
On Tuesday, Bloomberg News reported that Elliot Investment Management and Vista Equity Partners were considering making a joint bid for Citrix, citing unidentified sources close to the matter.
Following Elliot’s stake, UBS analyst Karl Keirstead, who had raised his price target on the stock to $108 from $100 on Elliot’s move, said Citrix was “under-valued as investors over-index on metrics (revs growth, EBIT margins, cash flow) that are distorted by the term-to-subscription model transition and Citrix’s inability to correctly guide to the right mix.”
Citrix shares are up 35% over the past 12 months, compared with a 14% gain on the iShares Expanded Tech-Software Sector ETF IGV, +1.76%, a 25% rise in the S&P 500 index SPX, +1.44%, and a 19% gain on the tech-heavy Nasdaq Composite Index COMP, +1.65%.