UPDATE: Wunderlich Securities Upgrades F5 Networks to Buy

Wunderlich Securities raises its rating on F5 Networks FFIV to Buy from Hold and increases its price target from $120 to $145 as the company reported a good quarter. Wunderlich Securities says, "Accelerating product revenue growth, record gross margin, and book/bill of more than one made F5 Networks' (FFIV) 2Q12 a significant milestone, in our opinion. None of these metrics represented dramatic change, but were all positive in terms of direction. Meanwhile, the industry is in the early stage of a server upgrade cycle (Romley) that we expect to increase demand for control of server-based applications (both physical and virtual), the core business of FFIV. In our view, this amplifies the significance of the company's progress." FFIV closed at $124.21 on Wednesday.