viewMicro Focus International plc

Citi says its time to stop selling Micro Focus shares

The bank moves to 'neutral' and says it is "staying selective" in the enterprise software sector.

Micro Focus International plc - Citi says its time to stop selling Micro Focus International Plc shares

It is time to stop selling Micro Focus International plc (LON:MCRO), according to Citigroup, which has upgraded the software firm to ‘neutral’ from ‘sell’.

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.

READ: UBS predicts ‘long and difficult road’ for Micro Focus

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.

Quick facts: Micro Focus International plc

Price: 436.9 GBX

Market: LSE
Market Cap: £1.46 billion

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