Shorts banked today | après moi le déluge | New money “can afford to wait”
Revenue growth in the quarter of 6% was “The worst performance since the financial crisis” as one analyst described it.
Wunderlich’s Matthew Robison, cutting his rating from Buy to Hold, writes that new money “can afford to wait” before getting into the stock,” given it seems growth will be constrained for some time to come:
Top-line performance and guidance is above our prior, below-consensus forecast, but the positive variance is from services, not revenue, and the company is spending more to get it done than we anticipated. F5 has a fortress-like franchise in enterprise, but performance in key markets for innovation, particularly the tech sector, is not encouraging. With the economy appearing to soften further and a major new product cycle that might not accelerate sales for another six months, we are lowering our rating to Hold from Buy.