F5 Networks Receives a Hold from Credit Suisse

By Carrie Williams

Credit Suisse analyst Sami Badri reiterated a Hold rating on F5 Networks (NASDAQ: FFIV) today and set a price target of $134. The company’s shares opened today at $143.43, close to its 52-week high of $144.28.

Badri observed:

“We view this partnership as a solid opportunity for F5 given that Equinix has 23.6% share of the multi-tenant data center market, the largest vendor by far, and that F5 has been fairly sidelined in the cloud opportunity based on our views. We do not integrate the potential revenues from this partnership in our assumptions, but note this does give F5 another avenue of growth, beyond their current enterprise ADC install base. New security products to address the security focused buyer. Along with the already announced single-purpose security appliances in 2016, F5 confirmed and announced that it will have three standalone security products shipping in 2017 (Herculon, DDoS Hybrid Defender, and SSL Orchestrator) that tailor to the IT security buyer.”

Badri has an average return of 3.0% when recommending F5 Networks.

According to TipRanks.com, Badri is ranked #2666 out of 4229 analysts.

Currently, the analyst consensus on F5 Networks is Moderate Buy and the average price target is $136.40, representing a -4.9% downside.

In a report issued on November 9, Nomura Holdings also upgraded the stock to Hold with a $130 price target.

The company has a one year high of $144.28 and a one year low of $86.03. Currently, F5 Networks has an average volume of 765.9K.

Based on the recent corporate insider activity of 48 insiders, corporate insider sentiment is negative on the stock. Earlier this month, Alan Higginson, a Director at FFIV sold 3,000 shares for a total of $412,470.

F5 Networks, Inc. engages in development of software-defined application services. The firm includes marketing and sale of application delivery networking products. The company was founded on February 15, 1996 and is headquartered in Seattle, WA.