BMO Capital Raises Price Target on F5 Networks (FFIV) to $125 Following 3Q Beat
BMO Capital reiterated a Market Perform rating on F5 Networks (NASDAQ: FFIV), and raised the price target to $125.00 (from $104.00), following the company's 3Q earnings report. FFIV reported revenues of $497mm, in line with the consensus estimate of $496. EPS came in ahead of estimates at $1.81 compared to $1.79.
Analyst Tim Long commented, "FFIV reported solid results and upside on guidance. F3Q revenues of $497 mmwere in line with our/consensus estimate of $496 mm and EPS of $1.81 topped our/consensus $1.78/$1.79 estimates. While the quarter was generally solid,product sales remained weak and were slightly below our expectations, thoughsales should improve as the refresh gains traction over the next few quarters. Strength in APAC and Japan were offset by weakness in the Americas related to softer carrier spending and weaker demand in EMEA, particularly in the U.K. Mix helped drive some gross margin upside and operating margins were better,benefitting from lower opex as management hired less than expected in thequarter. Our FY2016 pro forma EPS is increasing to $7.15 from $7.09 to reflect the EPS upside in the quarterly guidance. For FY17, we are increasing our EPS estimate to $8.10 from $8.03."
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Shares of F5 Networks closed at $121.47 yesterday.