Pacific Crest Securities Reiterates Outperform Rating, $110 PT on F5 Networks as Fundamentals are Expected to Improve

In a report published Tuesday, Pacific Crest Securities analyst Brent Bracelin reiterated an Outperform rating and $110.00 price target on

. In the report, Pacific Crest Securities noted, “Overall enterprise spending has been mixed, as seen by demand shortfalls at Citrix, Teradata, Red Hat, and IBM. However, positive reseller feedback on F5's new family of appliances gives us confidence that it should exceed our revenue estimate of $384 million. This would imply growth would accelerate to at least 6% in 4Q13 from 4% over the past six months. As government spending has become more volatile, F5 has guided revenue for the December to be flat to +2% sequentially, with the typical enterprise budget flush offset by a meaningful decline in federal spending. For example, federal has declined by 42% and 50% sequentially in each of the past two December quarters. We would not be surprised if, once again, F5 provides a conservative outlook of flat to +2% sequential growth, implying guidance of $384 million to $392 million.” F5 Networks closed on Monday at $90.11.