NEW YORK (TheStreet) -- F5 Networks (FFIV) - Get Report stock was downgraded to "sector perform" from "outperform" at RBC Capital Markets on Thursday. The firm lowered its price target on the stock to $125 from $130.
The Seattle-based application delivery services company's end-markets are maturing as workloads migrate to the cloud, RBC Capital said, adding that the company's first quarter 2016 guidance was also lowered yesterday.
"F5 is dominant in ADC's, a market that may be slowing a bit as some web companies attempt to provide certain rudimentary application prioritization services in the cloud," RBC Capital said.
F5 Networks lowered its fiscal 2016 first quarter guidance to revenue of $480 million to $490 million versus RBC Capital analysts' projections of $505 million.
F5 Networks reported 2015 fourth quarter earnings after yesterday's close of $1.84 per share that beat RBC Capital analysts' projections of $1.73 per share. However, F5 Networks' fourth quarter revenue of $501.3 million was lower than RBC Capital's projections of $505 million.
Shares of F5 Networks were down 8.36% to $111.19 on heavy trading volume. So far today, 3.54 million shares of F5 Networks have traded versus its 30-day average of 1 million shares.
Separately, TheStreet Ratings team rates F5 NETWORKS INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
We rate F5 NETWORKS INC (FFIV) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, expanding profit margins and good cash flow from operations. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.
You can view the full analysis from the report here: FFIV