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FSCT

ForeScout

$25.39 /

-13.83 (-35.26%)

, CSCO

Cisco

$45.83 /

-0.98 (-2.09%)

13:34
10/10/19
10/10
13:34
10/10/19
13:34

Forescout pummeled, Cisco falls amid weakening enterprise spending view

Shares of publicly-traded companies in the network security space are trading lower after Forescout Technologies (FSCT) announced preliminary results for its third quarter. Forescout slashed its view on sales and profit for the quarter, as sales are seen getting pushed out to future quarters amid a weakening in the global macroeconomic environment. EXPECTATIONS FALL: Forescout now sees total Q3 revenue of $90.6M-$91.6M as compared to its prior view of $98.8M-$101.8M. Non-GAAP operating loss for Q3 is expected to be in the range of $1.6M-$1.4M, compared to the company's prior guidance range for an operating profit of $2.6M-$3.6M. Forescout CEO Michael DeCesare said, "Q3 results were impacted by extended approval cycles which pushed several deals out of the third quarter. This was most pronounced in EMEA against the backdrop of a challenging macro-economic environment. These deals were not lost to competitors and we are working to get them over the finish line." JPMorgan analyst Sterling Auty downgraded ForeScout to Neutral from Overweight after the company announcement. Auty cut his price target for ForeScout shares to $35 from $54. He also called this the "first notable negative preannouncement" in the software sector and thinks investors will be watching carefully to see if there are further issues that will cause multiples in the space to contract further. ENTERPRISE SPENDING DROUGHT: Adding to the negativity in the Enterprise space was a Cisco Systems (CSCO) downgrade from Goldman Sachs. Goldman Sachs analyst Rod Hall downgraded Cisco Systems to Neutral from Buy with a price target of $48, down from $56. Large enterprise spending will continue to weaken and telecom spending activity will remain depressed in the near term, Hall stated. The analyst noted that Goldman's Enterprise Activity Index deteriorated in September, while his latest reseller survey was also incrementally negative on enterprise spending trends. PRICE ACTION: Shares of Forescout are down over 35.5% to $25.26 while Cisco is down over 2%. OTHERS TO WATCH: Other companies to watch in the enterprise and security space include A10 Networks (ATEN), Check Point (CHKP), CyberArk (CYBR), Cyren (CYRN), and Fortinet (FTNT).

FSCT

ForeScout

$25.39 /

-13.83 (-35.26%)

CSCO

Cisco

$45.83 /

-0.98 (-2.09%)

ATEN

A10 Networks

$6.26 /

-0.095 (-1.49%)

CHKP

Check Point

$109.77 /

-0.38 (-0.34%)

CYBR

CyberArk

$101.45 /

-4.57 (-4.31%)

CYRN

Cyren

$1.64 /

-0.11 (-6.29%)

FTNT

Fortinet

$77.74 /

-0.15 (-0.19%)

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FSCT ForeScout
$25.39 /

-13.83 (-35.26%)

10/10/19 Needham
Needham downgrades ForeScout to Hold on macro backdrop, sales challenges
10/10/19 Needham
ForeScout downgraded to Hold from Buy at Needham
10/10/19
Fly Intel: Top five analyst downgrades
10/10/19 JPMorgan
ForeScout downgraded at JPMorgan after 'notable negative preannouncement'
CSCO Cisco
$45.83 /

-0.98 (-2.09%)

10/10/19 Goldman Sachs
Cisco downgraded to Neutral from Buy at Goldman Sachs
09/23/19 Northland
Inphi drops after Northland sees 'large cut' to Amazon 400G rollout plans
09/19/19 BofA
Check Point downgraded to Underperform from Buy at BofA/Merrill
ATEN A10 Networks
$6.26 /

-0.095 (-1.49%)

12/10/18 DA Davidson
A10 Networks upgraded to Buy at DA Davidson on new 'foundation for growth'
12/10/18 DA Davidson
A10 Networks upgraded to Buy from Neutral at DA Davidson
CHKP Check Point
$109.77 /

-0.38 (-0.34%)

10/08/19
Fly Intel: Top five analyst downgrades
10/07/19 Jefferies
Check Point downgraded to Hold from Buy at Jefferies
10/07/19 Jefferies
Check Point downgraded to Hold from Buy at Jefferies
10/02/19 Truist
SunTrust initiates infrastructure and security sector
CYBR CyberArk
$101.45 /

-4.57 (-4.31%)

08/21/19 Cowen
CyberArk initiated with an Outperform at Cowen
08/07/19 JPMorgan
CyberArk price target raised to $160 from $125 at JPMorgan
08/07/19
CyberArk selloff on CRO exit 'overreaction' a buying opportunity, says Dougherty
05/31/19
Fly Intel: Top five analyst initiations
CYRN Cyren
$1.64 /

-0.11 (-6.29%)

06/25/19 B. Riley FBR
Cyren initiated with a Buy at B. Riley FBR
FTNT Fortinet
$77.74 /

-0.15 (-0.19%)

08/02/19
Fortinet upgraded to Buy at BofA/Merrill on 'solid' execution in Q2
08/02/19 BofA
Fortinet upgraded to Buy from Neutral at BofA/Merrill
06/24/19 JPMorgan
Fortinet upgraded to Overweight from Neutral at JPMorgan

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