F5 Networks Price Target Raised To $130 At Deutsche Bank
Thursday, January 19, 2022 1:50 PM

Deutsche Bank lifted its price target on F5 Networks Inc. (NASDAQ:FFIV) to $130 from $125, citing the software maker's solid quarterly numbers and guidance.

"F5 is among our top mid-cap ideas; a play on early stage ADC product cycle ramps: e.g. traffic management, security offload, mobile data, Web security, etc," said DB analyst Brian Modoff, who has a "Buy" rating on the stock.

The Seattle-based company's Q1 revenues were $322.4 million and pro-forma EPS was $1.03 – both beats, versus DB estimate and consensus. The Q2 guide ($334.5 million / $1.06 [mid-point]) was above DB estimate and consensus, Modoff said.

"While product revenues came in a touch below expectations, our latest checks have been consistent with management’s comments around anticipation of product revenue re-acceleration from Q2 onwards," Modoff wrote in a note.

Modoff said he sees 2012 as a turning point year for F5, with major product cycles in enterprise datacenters, telcos, and the Cloud providers helping to drive above target growth for F5’s Application Delivery solutions.

On Thursday, the stock, which has been trading in the 52-week range between $69.01 and $143.60, jumped 12.9 percent to $122.47.