Last March, the software group shocked the market when it parted ways with chief executive Chris Hsu after slashing its revenue guidance.
Shares plunged on the news and fell below 1,000p. But they have since recovered and are now trading at similar levels to before the profit warning.
“Ultimately, trading never deteriorated to the extent feared,” said Barclays in a note to clients.
“Micro Focus has made very significant progress since the warning and the business has stabilised. We are encouraged by the progress and anticipate ongoing positive momentum in earnings.
“However, while the stock still looks cheap on headline P/E, it has, in our view, reached fair value on an enterprise basis.”
The analysts concluded: “Despite increasing our price target to 2,000p due to the rerating of the market, we cannot find sufficient upside to maintain an ‘overweight’ rating. We therefore downgrade to ‘equal weight’.”
Micro Focus shares were down 0.3% to 1,939p in late-morning trading on Friday.