Nomura Securities Chops Numbers on F5 Networks (FFIV); Macro Likely to Overshadow New Products N-T
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Price: $403.20 -3.08%
Rating Summary:
21 Buy, 25 Hold, 4 Sell
Rating Trend:
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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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Nomura Securities reiterates a 'Neutral' on F5 Networks (NASDAQ: FFIV) price target of $109.00 (from $142.00).
Analyst, Stuart Jeffrey, said, "F5 reported good results in light of the macro concerns heading into earnings. Revenues of $353mn and non-GAAP EPS of $1.14 were broadly in line with consensus. The weak demand environment was evident in its $360-$370mn / $1.16-$1.19 revenue/EPS outlook, as they fell short of expectations. Management stated a series of major product upgrades during the year, which includes new hardware, a major update to its operating system, and new solutions for the enterprise and carriers. Based on the current share price of $98, our analysis suggests implied long-term revenue growth of 14% to 2021 and an adjacent market share requirement of 10%. While valuation has fallen to more reasonable levels, we still see risk given the macro pressures, the lack of visibility of new products and F5’s near-term high valuation multiples. We are reducing our target price to $109, which is based on 16x our CY13 FCF/share estimate of $6.82."
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 $98.59 yesterday.
Analyst, Stuart Jeffrey, said, "F5 reported good results in light of the macro concerns heading into earnings. Revenues of $353mn and non-GAAP EPS of $1.14 were broadly in line with consensus. The weak demand environment was evident in its $360-$370mn / $1.16-$1.19 revenue/EPS outlook, as they fell short of expectations. Management stated a series of major product upgrades during the year, which includes new hardware, a major update to its operating system, and new solutions for the enterprise and carriers. Based on the current share price of $98, our analysis suggests implied long-term revenue growth of 14% to 2021 and an adjacent market share requirement of 10%. While valuation has fallen to more reasonable levels, we still see risk given the macro pressures, the lack of visibility of new products and F5’s near-term high valuation multiples. We are reducing our target price to $109, which is based on 16x our CY13 FCF/share estimate of $6.82."
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 $98.59 yesterday.
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