JP Morgan Cautious On F5 Networks Heading Into Q1 Print


27% profit every 20 days?

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JPMorgan issued a report highlighting F5 Networks, Inc. (NASDAQ: FFIV) ahead of the company's FQ1'16 results which are scheduled to be announced at market close on January 20.

Analysts Rod Hall, Rajagopal Raghunathan and Ashwin Kesireddy wrote, "F5 reported strong growth in the Government and Fed businesses for both FQ3'15 and FQ4'15...41 percent of total product sales in FY15 included one or more security products, representing 22 percent year-over-year growth...Market risk aversion probably weighs against a sustainable rebound should numbers end up in line or better."

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JPMorgan noted three key catalysts for F5 Networks heading into 2016:

1. CEO Change

John McAdam is returning as CEO of the company and analysts believe that his industry knowledge and strong track record of execution and optimizing business efficiency could drive the company going forward.

2. Growth In Key Segments

JPMorgan analysts noted that F5 has experienced significant growth in both software revenue and their security segments. This growth has been accelerated by demand for its services from the government and the financial services industry.

3. The Fed

Analysts wrote that F5 reported strong growth with their Fed businesses, which are typically sticky relationships. F5 has the opportunity to increase the penetration of its product offerings within its customer relationships, which can help the company expand and acquire additional market share in the competitive network-based applications industry.


27% profit every 20 days?

This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.


Posted In: Analyst ColorAnalyst RatingsAshwin KesireddyJPMorganRajagopal RaghunathanRod Hall