Will F5 Networks (FFIV) Stock Be Pressured by Pacific Crest Downgrade?
NEW YORK (TheStreet) -- F5 Networks (FFIV) - Get Report stock had its ratings slashed to "sector weight" from "overweight" by analysts at Pacific Crest Securities this morning.
The firm pointed out that the downgrade was due to cloud pressures that continue to curb new on-premise IT upgrades.
Additionally, the mix shift to subscription offerings including Silverline, LineRate and Virtual Editions, may partially mute a second-half product recovery. However, these offerings should enhance visibility long term, analysts noted.
Until these current secular headwinds wane, analysts are holding off on being bullish for now.
Shares are unchanged at $107.33 in Tuesday's pre-market trading session.
Based in Seattle, F5 Networks develops, markets, and sells application delivery networking products that optimize the security, performance, and availability of network applications, servers, and storage systems.
Separately, TheStreet Ratings currently has a "Buy" rating on the stock with a letter grade of B-.
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 and expanding profit margins. We feel its strengths outweigh the fact that the company has had sub par growth in net income.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.
You can view the full analysis from the report here: FFIV
