F5: UBS Trims Ests; Sees Weak IT Networking Spending
F5 Networks (FFIV) shares are lower today after UBS analyst Saud Masud cut his earnings estimates and price target for the company. Masud chopped his 2008 EPS estimate to 95 cents from $1. For ‘09, he goes to $1.27, from $1.40. His target is now $32, down from $44.
Masud says the company’s fourth quarter results should be in line with Street expectations of 21 cents a share. But he says that given the “challenging market environment,” especially in the financial and technology sectors “it is likely that IT spending decisions within key verticals may see some delays and pushouts in ‘08.” He says checks find January is off to a slower start, and that IT networking budgets may be flat to down 15% in the first half, possibly stabilizing in the second half.
Masud maintains his Buy rating on the shares, and says that with $475 million in cash, the company could consider buying back shares.
F5 today is down 33 cents, or 1.6%, at $20.35.
Seeing these downgrades makes one wonder if these financial institutions aren’t shorting and then putting out announcements like this and the one by jefferey’s to aid their shorting. If all co’s have current networks then this may be correct but….. I haven’t seen that and I am an IT Consultant. Most co’s networks are on their middle to last legs from a network perspective meaning networks and infrastructure is 3-5 yrs old and needs to be replaced/upgraded So I have to soundly disagree with that assessment
Tech Trader Daily is a blog on technology investing written from Palo Alto, California by long-time Barron's West Coast Editor Eric J. Savitz. The blog provides news, analysis and original reporting on events important to investors in software, hardware, the Internet, telecommunications and related fields.
