Citi’s somewhat merciful upgrade follows an 80% decline in the software firm’s share price over the past year.
Commenting more broadly on the enterprise software industry, Citi added that it intends to “stay selective” meanwhile it has a “relatively cautious” stance on the IT services sector.
Last month, Micro Focus was downgraded to ‘neutral’ from ‘Buy’ by UBS as the Swiss bank predicted a “long and difficult road ahead”.
UBS slashed its target price to 810p from 1,530p whilst highlighting “disappointing” financial results statement – released in February, it showed a 30% drop in adjusted pre-tax profit to US$3.3bn.
The Swiss bank added that Micro Focus’s restructuring was likely to squeeze profits, even if some benefits begin to emerge.