Pacific Crest Downgrades F5 Networks (FFIV) to Sector Weight

Pacific Crest downgraded F5 Networks (NASDAQ: FFIV) from Overweight to Sector Weight and removed its price target (prior $109). Analyst Brent Bracelin sees risk/reward as balanced.

"We are downgrading FFIV to Sector Weight based on: (1) valuation given shares are within 2% of our $109 fair-value target, (2) the mix shift to subscription offerings may partially mute a second-half product recovery, (3) cloud pressures that continue to curb new on-premise IT upgrades, and (4) increasing probability of M&A," said Bracelin.

"FIV shares have risen 11% YTD and 25% from the February lows to within 2% of our $109 fair-value target. The risk/reward now appears balanced with shares approximately 20% away from our bull/bear scenarios. Our Sector Weight rating reflects our belief that the Shasta appliance refresh cycle will not drive a return to double-digit product growth, at least not for any quarter this year, and there is increasing execution risk with a higher probability of M&A within cloud security," added the analsyt.

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 $107.33 yesterday.

You May Also Be Interested In

• HSBC Downgrades Feng Tay Enterprises (9910:TT) to Hold
• OPAP SA (OPAP:GA) PT Lowered to EUR19 at HSBC
• QuantumScape (QS) PT Lowered to $6 at Truist Securities