Goldman Sachs Downgrades F5 Networks, Inc. (FFIV) to Sell, Cites Cyclical Risks

October 8, 2010 6:56 AM EDT
Get Alerts FFIV Hot Sheet
Price: $180.71 -0.29%

Rating Summary:
    20 Buy, 26 Hold, 2 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 19 | Down: 13 | New: 24
Trade Now! 
Join SI Premium – FREE
Goldman Sachs downgrades F5 Networks, Inc. (Nasdaq: FFIV) from Neutral to Sell, and sees 18% downside to their $80 price target.

The firm said cyclical risks is not reflected in the rich multiple which now stands at 32x, driven by its position as a key Cloud vendor and a significant M&A premium. "However, our analysis suggests that almost 85% of FFIV’s growth has been driven by the cyclical server refresh and share gains, rather than the Cloud build-out. This puts its growth trajectory in 2011, and thus the multiple, at risk," the firm notes.

Serious News for Serious Traders! Try Premium Free!

You May Also Be Interested In

Related Categories

Downgrades, Trader Talk