Morgan Stanley Has Positive Outlook For A10 Networks

In a report published Thursday, Morgan Stanley analyst James E. Faucette reiterated an Equal-Weight rating on

. In the report, Morgan Stanley noted, “ADC market remains healthy as it increasingly becomes a platform for additional functionality. Recently published Dell'Oro data points indicate a 6% CAGR for the ADC market from 2014-2018, one of the healthiest in networking. The rationale for the ongoing strength in the market is enhancement of ADCs beyond server load balancing to include increasing amounts of security services (e.g.application firewalls, DDoS, Web firewalls). Given ADC's location in the network and the ability to deliver Layer 4-7 services, Dell'Oro expects these ancillary services to be successful.” A10 Networks closed on Wednesday at $10.86.