UPDATE: FBN Securities Downgrades F5 Networks to Sector Perform

FBN Securities lowers its rating on F5 Networks

to Sector Perform from Outperform on valuation, but raises the price target $10 to $135 on better spending trends and DFC tweaks. FBN Securities says, "We are downgrading shares of FFIV from Outperform to Sector Perform but raise our PT from $125 to $135 to reflect better network spending trends and tweaks to our DCF. Shares of FFIV have appreciated from $106 at the beginning of the year to $134 (up 26% YTD) and now are almost fully valued. We still believe that FFIV will grow revenue in F2012 by over 20% to $1.39B (which is consensus). Shares are now trading at 24x F2012 and 21x F2013 NG EPS, and at an EV/sales ratio on ~5x on F2013 revenue. We are modestly increasing estimates." FFIV closed at $134.11 a share on Tuesday.