Goldman Sachs Downgrades Infoblox (BLOX) to Neutral

Goldman Sachs downgraded Infoblox (NYSE: BLOX) from Buy to Neutral with a price target of $15.00 (from $31.00). The change follows Q3 results and news its CEO is departing.

Analyst Kent Schofield said, "We were wrong to recommend that investors buy shares of BLOX in our February 20, 2014, upgrade. Even after the 29%+ decline in the after-hours share price, we expect the shares will remain in the penalty box until the company is able to reaccelerate product revenue growth. We do not expect this to occur in the near term as the company: (1) continues its transition away from too much focus on the still nascent security opportunity, and (2) works through a just announced CEO transition and an April 2014 global head of sales appointment. Furthermore, we believe the company's elevated level of concern on the F3Q conference call around the Microsoft competitive threat will make multiple expansion challenging until financial performance improves."

"Our industry diligence continues to show Infoblox retains a compelling technology lead over Microsoft, but we will be keeping a close eye on Microsoft's developing product set, especially as it relates to potential new Infoblox customers," added the analyst.

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

Shares of Infoblox closed at $20.52 yesterday.

You May Also Be Interested In

• ASM International NV (ASM:NA) PT Raised to EUR720 at Citi
• Meta Platforms Inc. (META) PT Lowered to $500 at Oppenheimer
• Moncler SpA (MONC:IM) (MONRY) PT Raised to EUR69 at RBC Capital