Needham & Company downgraded NetScout (NASDAQ: NTCT) from Buy to Hold aid questions about revenue visibility.

Analyst Scott Zeller commented, "We downgrade NetScout to HOLD on our lack of confidence in its ability to forecast the upcoming quarters in CY16/FY17, following the surprise weak guidance on Thursday's call. Our loss of confidence in NTCT forecasting is rooted in the structural change at the company, with roughly 1/3 of pipeline coming from legacy NTCT and 2/3 coming from the acquired Danaher (Tek). We have taken a cautious view on FY17, lowering our estimates materially. With an implied +5% apples-to-apples FY16-17 revenue growth and only 5% cost synergy, we believe shares will be rangebound. Shares finished near $22.15, or 1.6x EV/FY17 and 11x our new $1.91 FY17 EPS."

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Shares of NetScout closed at $22.09 yesterday.