F5 Networks (FFIV) PT Lifted At FBN Securities On Strong Growth, Pipeline
Thursday, January 19, 2022 9:55 AM

FBN Securities boosted its price target on F5 Networks Inc. (NASDAQ:FFIV) to $125 from $115, citing the software maker's strong growth and pipeline.

Analyst Shebly Seyrafi of FBN, who has an "Outperform" rating on the stock, said he is "particularly impressed by the steady increase in NG GM (now 83.5%, crossing the 83% “barrier”) due to better software attach."

The Seattle-based company is also experiencing robust sales of its VIPRION (especially VIPRION 2400/Victoria) chassis-based products, where sales basically tripled year over year and grew much faster than appliances, Seyrafi added.

"With strong bookings (+21% Y/Y), a strong pipeline, and a book-to-bill of over 1.0, we believe that bears who doubt that FFIV will be able to grow by over 20% in F2012/Sept. will be proven incorrect," Seyrafi wrote in a note.

For the FQ1/Dec. quarter, FFIV reported revenue of $322.4M (slightly ahead of consensus of $319M and guidance of $315-$320M) and NG EPS of $1.03 (ahead of consensus of $1.01 and guidance of $.99-$1.01).

For the FQ2/Mar. quarter, FFIV guided revenue of $332-337M (higher than consensus of $330M) and NG EPS of $1.05-$1.07 (vs. consensus of $1.05).

On Thursday, the stock, which has been trading in the 52-week range between $69.01 and $143.60, jumped 9 percent to $118.31.