UPDATE: Goldman Sachs Upgrades F5 Networks to Buy on Expectations Reset, 2013 Catalysts,
Goldman Sachs raised its rating on F5 Networks (NASDAQ: FFIV) from Neutral to Buy and raised its price target from $104 to $106.
Goldman Sachs said, "F5's shares have lagged the S&P/NASDAQ by 29%/30% year-to-date as product revenue yoy growth has decelerated and consensus estimates have been cut. … We estimate that three FY13 opportunities will drive an incremental approximately 7% percentage points yoy product revenue growth, on top of consensus FY13 product revenue growth estimates of 9%. The three opportunities are: (1) fixed (BIG-IP) application delivery controller (ADC) product refresh (we estimate an incremental 3% yoy), (2) share gains from Cisco's ADC market exit (3% benefit), and (3) security software module growth (1% benefit)."
F5 Networks closed at $86.14 on Monday.
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