F5 Networks (FFIV) Strong Trends Likely to Continue Into 3Q, Needham & Company Reiterates Buy

Needham & Company analyst Alex Henderson reiterated a Buy rating and $265.00 price target on F5 Networks (NASDAQ: FFIV) ahead of earnings Tuesday, AMC where he expects a similar report to last quarter's beat on the strength of 34% Software growth and robust Big IP ADC appliance sales delivering a solid 11% topline growth.

The analyst stated "Enterprise spending appears strong, spending on Digital Transformations/Cloud application workload transitions looks robust and a priority, and the distributed workforce continues to pressure the Enterprise edge with higher than traditional traffic growth, which in turn is causing Enterprise DC and Campus edge to run hot driving stronger than normal demand for ADCs. F5 management expressed confidence in driving 35% or better software growth for the year and the September comp looks reasonable. On EPS, Street is looking for $10.58, a 13% increase. With a mix to Software and a bias to expanding Operating Margins we see this as doable."

For an analyst ratings summary and ratings history on F5 Networks click here. For more ratings news on F5 Networks click here.

Shares of F5 Networks closed at $208.25 yesterday.

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