Deutsche Bank Downgrades Infoblox (BLOX) to Sell
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Rating Summary:
5 Buy, 10 Hold, 1 Sell
Rating Trend: = Flat
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Deutsche Bank downgraded Infoblox (NYSE: BLOX) from Hold to Sell with a price target of $13.00 (from $20.00). The change comes ahead of the company's Q1 print. Analyst Vijay Bhagavath anticipates decelerating FY16 growth and increased opex.
"BLOX reports Q1 FY16 results on Nov 30 after market close. While we anticipate an inline to slightly light report versus consensus, we are downgrading the stock from Hold to Sell, ahead of the print. We are lowering our FY16/17 estimates and PT from $20 to $13. Basis for our underweight thesis is our research noting: 1) Sunsetting of the “-A” refresh cycle by Dec/15 (currently driving +10% of product growth) likely to mute product refresh trends in 2016; 2) Transition of BLOX’s IP Address Automation and Security business to a SaaS model “deflationary” to FY16+ topline growth; 3) Migration to Public Clouds structurally compressing the TAM for BLOX’s products," said Bhagavath.
For an analyst ratings summary and ratings history on Infoblox click here. For more ratings news on Infoblox click here.
Shares of Infoblox closed at $15.74 yesterday.
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