Analysts raise price targets on F5 Networks
Thu Oct 22, 2009 10:55am EDT
Oct 22 (Reuters) - Shares of network-equipment maker F5
Networks (FFIV.O) touched a new year-high Thursday, a day after
the company posted better-than-expected results and provided a
strong quarterly outlook, prompting at least four brokerages to
raise their price targets on the stock.
"Pipeline, deal-closure rate, and overall visibility
continue to improve, suggesting that IT spending is showing
signs of recovery," analyst Ryan Hutchinson at Lazard Capital
Markets said.
After showing some improvement in the third quarter,
results this quarter accelerated, driven by strength in all
geographies and in the U.S. federal, telecommunications and
technology verticals, analyst Rohit Chopra at Wedbush
Securities said.
He added that the company's largest ever deal, which is
worth $35 million, with a Fortune 50 financial services
customer should add around $21 million in revenue in fiscal
2010.
UBS raised the company to "neutral" from "sell," and said
the order trends were improving and that its product revenue
were now showing robust growth.
Shares of the company were trading up 16 percent at $48.07
in morning trade on Nasdaq.
Following is the list of price-target changes made by the
brokerages on the stock:
Brokerage.........Price Targets ($)
...........................New Old
Barclays...............51 45
Wedbush..............50 43
Lazard...................50 45
RBC.......................49 40
UBS.......................47 29
(Reporting by Mansi Dutta in Bangalore; Editing by Anil
D'Silva)
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