Goldman Sachs Downgrades F5 Networks (FFIV) to Sell, 'Software Targets Optimistic'

June 1, 2021 2:54 AM EDT
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Price: $153.94 -0.7%

Rating Summary:
    19 Buy, 27 Hold, 4 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 2 | Down: 23 | New: 24
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(Updated - June 1, 2021 4:30 AM EDT)

Goldman Sachs analyst Rod Hall downgraded F5 Networks (NASDAQ: FFIV) from Neutral to Sell with a price target of $165.00 (from $191.00).

The analyst comments "We believe F5's software growth targets are optimistic in a market which is rapidly transitioning to cloud-based architectures where they have lower share. We also believe reopening presents risks to F5's revenue momentum, and note our EPS forecasts are tracking below consensus. Exiting earnings we have not seen consensus expectations reduced as much as we believe is appropriate for Software growth this year. Given this and our view that F5 has benefited from remote access spending, we believe the stock is likely to underperform the rest of our coverage in the short term. As a result, we downgrade F5 Networks from Neutral to Sell and reduce our 12-month price target to $165. To get more constructive we would like to see Software growth re-accelerate to FFIV's target range and/or consensus expectations reduce to something closer to our own forecasts."

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 $185.43 yesterday.

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