Shares of technology and cloud services provider F5 Networks (FFIV - Get Report) fell more than 4% on Monday after receiving a downgrade and price-target cut from Goldman Sachs on expectations of disappointing forward earnings growth.
Shares of F5 fell 4.66%, or $6.77, to $140.89 on the Nasdaq Stock Market after Goldman Sachs analyst Rod Hall downgraded the stock to sell from neutral, and lowered his 12-month price target on the shares to $120 from $165.
In a note to clients, Hall cited weaker spending and growing competitive risks taking a bite out of the company's top-line growth, as well as the company's recent acquisition of NGINX and its dilutive impact on shares as "materially altering" F5's earnings-per-share growth profile.
F5 and @nginx have joined forces to bridge the divide. From apps to infrastructure. From traditional to modern architectures. From developer to operations. See what's next: https://t.co/PY6B5QcUnQ pic.twitter.com/N1S8DNCYAT— F5 Networks (@F5Networks) May 9, 2019
Seattle-based F5 in March announced it was acquiring NGINX, an open source application delivery company, for $670 million.
Analysts polled by FactSet currently expect F5 to report fiscal third-quarter earnings of $2.55 a share on sales of $555.9 million. The current consensus among 20 polled analysts is a hold rating.
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