Needham & Company Downgrades Infoblox (BLOX) to Hold

Needham & Company downgraded Infoblox (NYSE: BLOX) from Buy to Hold.

Analyst Alex Henderson commented, "We should have reacted sooner. We do not see the Sales turn over issues and the product refresh timing issues going away. Perhaps they are discounted now, but with likely estimate reductions coming for CY16, we think the stock will be hard pressed to rise over the next 6-9 months. While we believe the long- term prospects for BLOX are good and we see a real need for its technology, these products are still sold and must be marketed. BLOX likely needs the better part of CY16 to rebuild its sales efforts. We expect solid Oct and Jan quarters but see real risk to down 1H16 numbers. BLOX is set to report Monday Nov 30. Accordingly, we are cutting our estimates, but the Street numbers still look too high. At the risk of calling a bottom on the stock, we are moving to the sidelines, downgrading to Hold."

The firm is cutting revenue estimates for CY16 to $386MM from $419MM and cutting CY16 EPS to $0.34 from $0.38.

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 $15.74 yesterday.

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