F5 Networks (FFIV) PT Lowered to $167 at Piper Sandler

Piper Sandler analyst James Fish lowered the price target on F5 Networks (NASDAQ: FFIV) to $167.00 (from $187.00) while maintaining a Neutral rating.

The analyst commented, "Shares are down ~10% AH as despite Software & recurring revenue re-accelerations, misses in product and billings as lead indicators, total sales miss, limited EPS upside, and the F2H24 guide ramp are causes of concern. The FQ2 weakness was primarily in Systems, Perpetual Software, and maintenance, which were partially offset by Subscription strength. F5's subscription transition, including SaaS transition within this transition, is still in its early days & creating messiness, and the macro-environment remains challenging for networking and on-premise, enterprise, & carrier exposed vendors. We had concerns around this print and believe this necessary transition will take multiple years to execute on, which leaves FCF estimates as too high near-term, and as such, we prefer other names in our coverage. Our estimates are slightly reduced, along with our PT to $167. Reit. Neutral."

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