F5 Networks (FFIV) Earnings Call Could Highlight Multiple Accretion From Kubernetes Adoption, Needham Reiterates Buy Ahead of Earnings

July 16, 2021 7:21 AM EDT
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Price: $204.24 +0.72%

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Needham & Company analyst Alex Henderson reiterated a Buy rating and $255.00 price target on F5 Networks (NASDAQ: FFIV) ahead of earnings on July 26, ATC where the reopening and Kubernetes adoption should drive demand for containerized vADCs, where NGINX has a 65% plus Market Share.

The analyst sees an opportunity for multiple accretion as well, stating "FFIV will become seen as a Kubernetes adoption play, which should re-rate the multiple higher. With Software driving 20%-40% growth, the mix shift to Software should accelerate Product Revenue growth. This mix shift also improves GMs. With a 65% plus share of ADCs embedded in Kubernetes workloads, the increasing penetration of Kubernetes of new application deployments combined with the rapid growth new Software Application should drive 50%-100% growth in this arena driving F5s Software Product sales."

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 $185.00 yesterday.

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