MKM Trims PT on F5 (FFIV) to $100; Missed Deals Still in Pipeline, Will be Closed
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Price: $403.20 -3.08%
Rating Summary:
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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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MKM Partners is cutting its price target on F5 Networks from $120 to $100 following Thursday's prelminary Q2 results release. The firm maintains its Buy rating.
MKM noted that, while some deals weren't closed within the quarter, the pipeline remains full and the deals will eventually be closed. The firm commented, "We recently spoke with three Tier 1 carrier contacts that did not give us March quarter revenue olor, but did say that lab trials of the Policy Enforcement Manager are progressing well and F5’s new products, including VIPRION 4800 and the Application Delivery Firewall, are compelling."
Service Provider spending has a low correlation in general, MKM said. While big iron telecom equipment has more predictable seasonality," the firm commented. "The timing of revenue recognition around carrier ADC spending has always seemed to be a bit of a random walk."
Security was a "bright spot" for the quarter. MKM stated, "The BIG-IP 4200, which was released in the December quarter, did well in the March quarter and BIG-IP 2000, released in the March quarter, is expected to do well in the current quarter."
The firm sees FY13 revs of $1.47 billion and EPS of $4.55, from prior expectations calling for revs of $1.56 billion and EPS of $5.10.
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 $90.42 yesterday.
MKM noted that, while some deals weren't closed within the quarter, the pipeline remains full and the deals will eventually be closed. The firm commented, "We recently spoke with three Tier 1 carrier contacts that did not give us March quarter revenue olor, but did say that lab trials of the Policy Enforcement Manager are progressing well and F5’s new products, including VIPRION 4800 and the Application Delivery Firewall, are compelling."
Service Provider spending has a low correlation in general, MKM said. While big iron telecom equipment has more predictable seasonality," the firm commented. "The timing of revenue recognition around carrier ADC spending has always seemed to be a bit of a random walk."
Security was a "bright spot" for the quarter. MKM stated, "The BIG-IP 4200, which was released in the December quarter, did well in the March quarter and BIG-IP 2000, released in the March quarter, is expected to do well in the current quarter."
The firm sees FY13 revs of $1.47 billion and EPS of $4.55, from prior expectations calling for revs of $1.56 billion and EPS of $5.10.
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 $90.42 yesterday.
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