UPDATE: Goldman Sachs Downgrades F5 Networks to Neutral, Reiterates $93 PT on Limited Upside to Consensus Estimates

In a report published Tuesday, Goldman Sachs analyst Kent Schofield downgraded the rating on

from Buy to Neutral, but reiterated the $93.00 price target. In the report, Goldman Sachs noted, “We are downgrading F5 shares to Neutral from Buy as we only have 4% upside to our $93 12-month price target. We believe consensus largely reflects the near-to-intermediate term revenue opportunity from the ongoing BIG-IP product cycle and Cisco application delivery controller (ADC) displacements. Also, we see limited upside to consensus EPS over the next two quarters as F5 invests to reinvigorate product sales growth and expand into security. Since we added F5 to the Buy List on November 13, 2012, shares are +4% vs. the S&P 500's +24% largely due to weaker than we had expected product sales, especially after telco spend disappointed in 1Q13.” F5 Networks closed on Monday at $89.17.