F5 Networks stock up 6 percent on analyst upgrades
AP - Friday September 26, 1:51 pm ET
Shares of F5 Networks up nearly 6 percent after 2 analysts upgrade stock to 'Buy' from 'Hold'
WASHINGTON (AP) -- Shares of F5 Networks were up nearly 6 percent Friday after two analysts upgraded the stock, saying that recent concerns about the company's exposure to the crisis on Wall Street are overblown.
Lazard Capital Markets analysts Ryan Hutchinson and Edward Parker and Stifel Nicolaus analyst Sanjiv Wadhwani both upgraded F5 Networks' shares to "Buy" from "Hold."
Shares of F5 Networks have lost roughly 30 percent of their value over the past two weeks. The stock, which traded as high as $32.60 on Sept. 12, closed at $22.52 Thursday.
In a research note, Wadhwani said that while the financial sector accounts for 20 percent of F5 Networks' revenue, Wall Street and major banks account for only 6 percent of total revenue. He added that the company continues to see momentum with other corporate customers and big telecommunications companies, including as AT&T Inc. and Comcast Corp.
F5 Networks, based in Seattle, makes technology used to improve the speed, security and reliability of network applications.
Lazard Capital Markets analysts Hutchinson and Parker said that while the pace of business has slowed considerably in September, strong results from July and August should enable F5 to meet its fourth-quarter projections of 38 cents to 39 cents in earnings per share on revenue of $172 million to $174 million.
Shares of F5 were up $1.17, or 5.3 percent, at $23.71 in afternoon trading.
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