UPDATE: Barclays Capital Downgrades F5 Networks On Mixed 2015 Outlook

In a report published Wednesday, Barclays Capital analyst Ben A. Reitzes downgraded the rating on

from Overweight to Equal-Weight, but reiterated the $136.00 price target. In the report, Barclays Capital noted, “We believe that 2015 should see a continuation of several trends that were evident throughout the 2H of 2014. The emergence of the cloud and software-defined technologies are playing a larger role in IT decision making, which should only continue. Obviously, we still see the cloud as a disruptive concept that bridges the legacy data center with next generation architectures - with a focus on doing more with less. It is still not clear how much risk the rapid transition poses for companies like IBM, HP, Juniper, EMC, NetApp and Cisco. We envision several restructurings blunting the downside damage of cloud for some, but then still see risks of reacceleration of pressures later. However, we view companies like Seagate and Western Digital providing useful components for the transition to the public cloud - and CDW providing an invaluable channel that helps SMB customers see the benefits...We are lowering our rating on F5 to Equal Weight based on our view that the risk/reward equation is balanced at current levels despite positive fundamentals.” F5 Networks closed on Tuesday at $128.67.