Shares of Citrix Systems (CTXS) are under pressure today, shedding part of Monday's gains after media reports said the company is working with advisers on a potential sale. Commenting on the news, Citi analyst Walter Pritchard told investors he believes Cisco Systems (CSCO) has the most obvious fit among the strategic buyers, but noted that a near-term deal may be unlikely.

POSSIBLE SALE: According to a Bloomberg report Monday night, Citrix is working with advisers on a potential sale of the company. Citrix tapped Goldman Sachs to sound out possible suitors including private equity firms, the report noted, adding however that there has been limited interest as its big market valuation indicates that firms would need to partner to fund an offer. A boost in Citrix's market value over the past year is also making it complicated for private equity firms to offer a premium for the company, the report noted.

CISCO A STRATEGIC FIT: Commenting on the press reports suggesting that Citrix has hired bankers and is seeking a sale of the company, Citi's Pritchard noted that it was stated that buyers being sounded out included private equity firms. However, the analyst acknowledged that he does not know how likely this is. As far as strategic buyers, Pritchard told investors that he believes Cisco is the most obvious fit, but since the company just announced the acquisition of AppDynamics, a near-term deal seems less likely. If there is speculation Citrix is for sale and then no transaction happens, some investors could view this as a sign there is no buyer and potentially less downside protection on the shares, the analyst contended. He reiterated a Buy rating and $94 price target on Citrix's shares.

COULD BE WORTH $100 PER SHARE: Also speculating on the news, Cowen analyst Gregg Moskowitz told investors in a research note of his own that he believes the likelihood of a sale cannot "reasonably be estimated," pointing out that interest is believed to be somewhat limited thus far due largely to the company's large-cap status coupled with its recent stock performance. Nonetheless, the analyst believes Citrix could be acquired for about $100 per share at the midpoint, which he finds "very reasonable" relative to other value infrastructure software companies. Most notably, this is only a modest premium to peer VMware (VMW), he argued. Moskowitz reiterated an Outperform rating and $90 price target on Citrix's shares.

PRICE ACTION: In afternoon trading, shares of Citrix have dropped about 3.8% to $81.69, after gaining almost 7% Monday.