Credit Analyst Bumps F5 Networks Price Target By 17%, Maintains Outperform

Credit Suisse analyst Sami Badri raised the price target on F5 Networks Inc FFIV to $278 from $238, implying a 24.42% upside, and maintained an Outperform following quarterly results.
The analyst cites the company's solid performance and Q1 2022 guidance.
F5 reported fourth-quarter FY21 revenue growth of 11% year-on-year to $682 million, beating the consensus of $671.7 million.
A 21% product revenue growth and 2% global services revenue growth drove the numbers. A 35% software revenue growth and 12% systems revenue growth Y/Y drove the non-GAAP product revenue.
Non-GAAP EPS of $3.01 beat the consensus of $2.75.
"With software revenue representing 45% of product revenue in the fourth quarter, and 80% of this software revenue coming from subscriptions, we continue to mark milestone after milestone in our rapid transformation to a software-led business model," CEO François Locoh-Donou said.
F5 sees Q1 FY22 revenue of $665 million - $685 million versus the consensus of $667 million.
F5 sees non-GAAP EPS of $2.71 - $2.83 versus the consensus of $2.76.
F5 sees FY22 revenue growth of 8% - 9%, including software revenue growth of 35% - 40%.
Price Action: FFIV shares closed higher by 5.94% at $216.02 on Wednesday.

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