UPDATE: Topeka Capital Markets Downgrades Websense to Sell Following Q4 Results

Topeka Capital Markets downgraded Websense

from Hold to Sell and lowered the price target from $17.00 to $10.00. Topeka Capital Markets noted, "Websense reported 4Q12 results at the high-end of guidance. However, guidance for 2013 falls well short of consensus as Websense will spend yet another year retooling its sales organization, which will pressure operating margins with the revenue benefit coming down the road given the subscription business model. By their guidance, billings growth in 2013 of 1-6% does not bode well for the faster revenue growth in 2014 that we were hoping for." Websense closed at $16.13 on Tuesday.