Oppenheimer Sticks to Its Hold Rating for F5 Networks (FFIV)


In a report released today, George Iwanyc from Oppenheimer maintained a Hold rating on F5 Networks (FFIV). The company’s shares closed yesterday at $162.09.

Iwanyc said:

“F5 announced it would acquire privately held NGINX, a modern open-source application delivery platform, for $670M in cash (implying ~25.7x trailing EV/sales). We’re positive on the acquisition as it extends F5’s DevOps push, giving F5 credibility with developers while offering model upside through integrating and cross-selling initiatives and growing higher margin software revenues in the mix (to 25%-30% of product revenue by FY19-20). Even so, F5 will face technology, go-to-market, and cultural integration challenges, making execution paramount to justify the price. We are comfortable staying on the sidelines until longer term model and execution concerns are mitigated. Our estimates remain unchanged. Maintain Perform.”

According to TipRanks.com, Iwanyc is a 3-star analyst with an average return of 4.0% and a 60.0% success rate. Iwanyc covers the Consumer Goods sector, focusing on stocks such as Hewlett Packard Enterprise, Ceragon Networks, and Juniper Networks.

The word on The Street in general, suggests a Hold analyst consensus rating for F5 Networks with a $174.33 average price target.

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F5 Networks’ market cap is currently $9.73B and has a P/E ratio of 20.02. The company has a Price to Book ratio of 6.91.

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F5 Networks, Inc. engages development and provision of software defined application services. It offers the development, marketing and sale of application delivery networking products that optimize the security, performance, and availability of network applications, servers, and storage systems.

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