Wells Fargo Downgrades Websense (WBSN) to Market Perform; Solid Q4, Weak Guidance

Wells Fargo downgraded Websense (NASDAQ: WBSN) from Outperform to Market Perform, price target range lowered to $20-21 from $24-26.

Wells analyst says, "While the TRITON product has done very well for the company - it grew to 60% of end-user billings this quarter versus 34% in Q1 2010, the strong traction is not reflected in the numbers. While Websense is successfully transforming itself to a TRITON company, the decline in the URL filtering base and associated lower renewal rate continues to mask the true growth of the business. In addition, multiple financial moving parts and the weakness in Europe continue to hold back growth. We believe unless investors see clear signs of improvement in billings and revenue and solid cash flow growth rate, the stock will continue to move sideways."

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

Shares of Websense closed at $18.90 yesterday.

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