- Needham analyst Alex Henderson reiterated a Buy and $303 price target on F5, Inc (NASDAQ:FFIV).
- F5 was careful not to update conditions post its last earnings call, but he sensed that demand was vital for Security and Systems.
- Supply remains a significant constraint and has not improved materially, but it seems there was improvement at the margin.
- F5 highlights solid redesign progress, which should start to help in the FY1Q/CY4Q quarter and ramp across FY23.
- Also Read: AI ‘Transformed’ This Networking Firm. Cisco May Want To Take Note, Analyst Says
- In addition, the software/feature work on the new rSeries systems continues to make solid progress and is gradually opening customer sales opportunities.
- On Security and Software, F5 is pretty straightforward.
- Demand remains strong, the pipeline is robust, and the macro conditions are not impacting the trajectory.
- FFIV shares have corrected more than other networking names, and surprisingly, based on his estimates, FFIV trades at a discount to Extreme Networks, Inc (NASDAQ:EXTR) and Juniper Networks, Inc (NYSE:JNPR) on CY23 EV/E and Cisco Systems, Inc (NASDAQ:CSCO) on CY24.
- Price Action: FFIV shares traded lower by 2.20% at $142.46 on the last check Friday.
F5 Could More Than Double As Solid Demand Trends Continue & Supply Constrains Start To Ease, Needham Says
Needham analyst Alex Henderson reiterated a Buy and $303 price target on F5, Inc (NASDAQ:FFIV). F5 was careful not to update conditions post…