UPDATE: Deutsche Bank Downgrades Infoblox Following Q3 FY14 Report

In a report published Friday, Deutsche Bank analyst Vijay Bhagavath downgraded the rating on

from Buy to Hold, and lowered the price target from $30.00 to $18.00. In the report, Deutsche Bank noted, “BLOX reported Q3 FY14: $61M / 7c – appx inline on revs; 3c EPS beat vs consensus. The Q4 guide was weak: $60-61M / break-even to 2c vs consensus: $66.6M / 6c. Two large US deals got postponed in Q3; management noting US enterprise IT buyers placing higher priority on Security – impacting IT resources for implementing Blox's DNS, DHCP, IPAM solutions. "We are downgrading BLOX from Buy to Hold; lowering our PT from $30 to $18 on our lowered forward estimates – noting the ‘higher priority' for Security likely to continue over the next few Q – muting Blox's Q/Q sales growth in FY15. DNS Security is likely to remain a bright spot – but small to impact numbers near-term.” Infoblox closed on Thursday at $20.52.