UPDATE: Wedbush Initiates Neutral, $22 PT on Infoblox; Valuation Upside Limited
Wedbush initiates its coverage on Infoblox (NYSE: BLOX) with Neutral rating and a price target of $22.
Wedbush notes, "Initiating coverage with a NEUTRAL rating and a $22 price target as we believe the signs of slowing in the IT spending environment, a deteriorating demand outlook in Europe, ramping investments in sales, and the stock's premium valuation leave little room for material upside from current levels. Longer term, however, we think Infoblox is poised to deliver sustainable doubledigit growth and significant improvements in OM, given its strong leadership position in the fast-growing DDI market."
BLOX closed at $21.98 on Thursday.
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