F5 Networks (FFIV) Numbers Ratcheted Higher at Nomura Following Q3 Earnings
Nomura Securities analyst Stuart Jeffrey raised estimates and his price target on F5 Networks (NASDAQ: FFIV) from $88 to $97 following Q3 earning results.
Jeffrey comments, "F5 appears to have recovered from a tough couple of quarters with better than expected FQ3 results and solid FQ4 guidance that looks beatable. In addition to improved revenue trends, with the potential for upside to earnings we believe that a November financial analyst day may settle long-term concerns and help drive F5’s earnings multiple. With FCF per share 25-30% ahead of EPS, we still believe that F5 merits a 20% premium to the market PE. On 16.8x our CY14E EPS estimate of $5.27 and adding in half of F5’s net cash, we derive fair value of $97. This assumes a 12% CAGR in revenue out to 2021. CY13E EPS from $4.48 to $4.53; FY14E EPS from $5.03 to $5.11."
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 $81.42 yesterday, with a 52 week range of $67.53-$111.58.
Jeffrey comments, "F5 appears to have recovered from a tough couple of quarters with better than expected FQ3 results and solid FQ4 guidance that looks beatable. In addition to improved revenue trends, with the potential for upside to earnings we believe that a November financial analyst day may settle long-term concerns and help drive F5’s earnings multiple. With FCF per share 25-30% ahead of EPS, we still believe that F5 merits a 20% premium to the market PE. On 16.8x our CY14E EPS estimate of $5.27 and adding in half of F5’s net cash, we derive fair value of $97. This assumes a 12% CAGR in revenue out to 2021. CY13E EPS from $4.48 to $4.53; FY14E EPS from $5.03 to $5.11."
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 $81.42 yesterday, with a 52 week range of $67.53-$111.58.