This company has come into the spotlight as a potential takeover candidate, and it gets 10% to 15% of revenue from government spending. Citrix Systems Inc. (NASDAQ: CTXS) is leading the transition to software-defining the workplace, uniting virtualization, mobility management, networking and software as a service (SaaS) solutions to enable new ways for businesses and people to work better.
Citrix solutions power business mobility through secure, mobile workspaces that provide people with instant access to apps, desktops, data and communications on any device, over any network and cloud. Strategic mergers and acquisitions and internal development have expanded Citrix’s addressable markets beyond access to legacy Windows applications to include desktop and server virtualization, team collaboration and application networking.
The Jefferies report said this:
We re-ran a previous survey in order to assess intentions among Citrix Systems customers to convert limited-use term licenses purchased during March-April 2020 to long-term contracts. The survey results were supportive and indicated that on average organizations plan to convert 75% of their limited-use licenses to recurring contracts and that a further 75% of these conversions will be deployed as term licenses. We noted that current year 2021 revenue growth guidance stands at +3-4% and we think that it can ultimately land in the high-single digits on the back of conversions which could add 3-4p points to growth and the Wrike acquisition which could add another 2-3pts to growth. Additionally, we have increased confidence in the calendar $10 free-cash-flow per share goal. Moreover, we pointed out that the company trades toward the bottom-end of its 13-18x free-cash-flow range.
The Jefferies price target of $180 is well above the posted consensus target of $158.85. Wednesday’s final Citrix Systems stock trade was at $119.18.
This is one of the top picks across Wall Street in its sector. Freeport-McMoRan Inc. (NYSE: FCX) is the world’s largest publicly traded copper and moly producer, as well as the eighth largest gold producer. Its key operating and development assets are in Indonesia, North America, South America and Africa.
Highly leveraged toward copper mining, the company could be a big player in a scenario of rebuilding and repairing old and battered projects, and it clearly would benefit from stronger demand and higher prices for industrial commodities.
The Jefferies analysts have remained bullish on the company for some time and noted this:
The company reported solid 1Q results as it continues to meet its production targets and as commodity prices strengthened. We pointed out that they increased their net cash cost guidance for 2021 from $1.25/ per pound to $1.33/ per pound due to a higher assumed copper price in the guidance, a lower assumed gold price and higher assumed energy costs. This is clearly a positive trade off, and we expect more of this going forward as copper breaks out to the upside. The company also confirmed that it has a stability agreement with international arbitration provisions at Cerro Verde which is very important in our view given the political risk in the country. Moreover, while Freeport-McMoRan and Indonesian policymakers were not able to agree on a smelter project, we believe a third-party agreement is still the most likely as that would be in the best interest of Inalum and the Indonesian govt. We continue to recommend the stock as one of our top picks globally in mining.
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