Canaccord Genuity Maintains a 'Hold' on F5 Networks (FFIV); Operating Margin + Tax Rate = EPS Upside
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Price: $403.20 -3.08%
Rating Summary:
21 Buy, 25 Hold, 4 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
21 Buy, 25 Hold, 4 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Canaccord Genuity maintains a 'Hold' on F5 Networks (NASDAQ: FFIV), PT $115.
Canaccord analyst says, "Although we look forward to Victoria and TMOS v11 as potential back-half topline catalysts, at present valuation EPS upside on margin discipline and lower tax rate alone isn’t enough to justify a new BUY rating – particularly into the strength of at least a moderate short squeeze."
"June revenue guidance of $287-292M (+4% Q/Q, +26% Y/Y at mid-point) and EPS of $0.89-$0.89 compares to consensus $290 and $0.89. Non-GAAP gross margin is expected to be 81.7-82.7% with $127-131M in opex, suggesting flat EBIT margin at 38%. Our revenue estimate is $290M vs. $294M previously, with EPS of $0.91 vs. our prior $0.88. Tax rate is guided to 33.5% vs. our prior 35%, adding $0.02 in EPS."
For more ratings news on F5 Networks click here and for the rating history of F5 Networks click here.
Shares of F5 Networks closed at $99.74 yesterday.
Canaccord analyst says, "Although we look forward to Victoria and TMOS v11 as potential back-half topline catalysts, at present valuation EPS upside on margin discipline and lower tax rate alone isn’t enough to justify a new BUY rating – particularly into the strength of at least a moderate short squeeze."
"June revenue guidance of $287-292M (+4% Q/Q, +26% Y/Y at mid-point) and EPS of $0.89-$0.89 compares to consensus $290 and $0.89. Non-GAAP gross margin is expected to be 81.7-82.7% with $127-131M in opex, suggesting flat EBIT margin at 38%. Our revenue estimate is $290M vs. $294M previously, with EPS of $0.91 vs. our prior $0.88. Tax rate is guided to 33.5% vs. our prior 35%, adding $0.02 in EPS."
For more ratings news on F5 Networks click here and for the rating history of F5 Networks click here.
Shares of F5 Networks closed at $99.74 yesterday.
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