Schaeffer's Trading Floor Blog

Analyst Downgrades: Citrix Systems, Groupon, and Quality Systems

Analysts downwardly revised their ratings on CTXS, GRPN, and QSII

by 7/26/2012 9:26 AM
Stocks quoted in this article:

Analysts are weighing in today on cloud computing concern Citrix Systems, Inc. (NASDAQ:CTXS - 75.11), daily deals site Groupon, Inc. (NASDAQ:GRPN - 7.24), and medical software provider Quality Systems, Inc. (NASDAQ:QSII - 23.63). Here's a quick roundup of today's bearish brokerage notes.

  • A number of analysts have cut their price targets on CTXS following last night's second-quarter release. Stifel Nicolaus lowered its target to $85 from $100; Mizuho reduced its forecast to $85 from $91; Needham trimmed its target to $85 from $90; and ThinkEquity dropped its price target to $76 from $84. The shares have slumped 4.2% ahead of the open, with CTXS on track to open near the $72 level. So far in 2012, the stock has notched a respectable gain of 23.7%, but today's pre-market slide means CTXS may breach support at its rising 40-week moving average.

  • Evercore downgraded GRPN to "equal weight" from "overweight," dragging the shares to a loss of 6.2% ahead of the open. The stock has already tumbled nearly 65% year-to-date, but eight analysts out of 19 still maintain an upbeat "strong buy" rating -- leaving room for additional downgrades during the near term. GRPN is currently poised to open at a new record low of $6.79.

  • QSII was cut to "neutral" from "buy" at Sterne Agee, while ISI Group dropped the stock to "market weight" from "overweight," and J.P. Morgan slashed its opinion to "neutral" from "overweight." This flood of bearish notes follows the company's disappointing first-quarter report, which saw QSII withdraw its full-year earnings guidance. The shares have plummeted 25.5% in electronic trading, expanding their year-to-date deficit of 36.1%. In fact, QSII is trading below $18 in pre-market action, putting the shares on pace to tag a new three-year low at the open.


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