UPDATE: Oppenheimer Downgrades F5 Networks to Perform on Near-Term Headwinds

Oppenheimer lowered its rating on F5 Networks

from Outperform to Perform and removed its previous $130 price target. Oppenheimer noted, "In a nutshell, we believe that (1) F5's security business is too small to move the dial, (2) its position in the carrier market is challenged competitively and eroding, (3) its margins have peaked with little to no room for further appreciation, (4) there is a possibility for further business disruption as F5 executes a product cycle in the midst of a spending slowdown/elections/fiscal cliff, and (5) we are concerned with further headwinds in the US region (ex-federal), which has been flat now for four quarters. We would rather get more constructive on the stock as we get closer to an expected better FY2H13." F5 Networks closed at $93.32 on Wednesday.