UPDATE: Citigroup Downgrades F5 Networks to Neutral, Lowers PT on Disappointing Results

In a report published Friday, Citigroup analyst Kevin J. Dennean downgraded the rating on F5 Networks

from Buy to Neutral, and lowered the price target from $125.00 to $80.00. In the report, Dennean noted, “After the close on 4-Apr, FFIV negatively pre-announced results of $350.2mln/$1.06-$1.07, well below guidance of $370-$380mln and $1.21-$1.24; consensus called for $376mln/$1.23. Mgt cited difficulty in deal closures, Telco vertical weakness (down significantly q/q and y/y, with particular weakness in N. America), and weaker Gov't sales. We sharply reduce our estimates and target price and downgrade FFIV shares to Neutral/High Risk (2H) with an $80 target.” F5 Networks closed on Thursday at $76.14.