Needham & Company Downgrades F5 Networks (FFIV) to Hold

Needham & Company downgraded F5 Networks (NASDAQ: FFIV) from Buy to Hold following Q3 results, saying slowing growth challenges outlook.

Analyst Alex Henderson commented, "Weaker than expected revenues combined with soft guide vs a relatively easy comparison is bringing into question F5's ability to grow at a double-digit rate. F5 has been able to extend its technology into adjacent opportunities by taking advantage of application aware skills, but this appears to be running out of scope. With CY4Q against an easy comp guidance implying flat Product sales y/y, we think F5 will be increasingly valued as a single-digit growth company and its multiple stall or even contract. We move to the sidelines, downgrading to Hold despite looming easy comps."

The firm cut CY16 Revenue estimates to $2.082B from $2.247B and EPS to $6.90 from $7.15.

For an analyst ratings summary and ratings history on F5 Networks click here. For more ratings news on F5 Networks click here.

Shares of F5 Networks closed at $121.34 yesterday.

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