F5 Could More Than Double As Solid Demand Trends Continue & Supply Constrains Start To Ease, Needham Says

Needham analyst Alex Henderson reiterated a Buy and $303 price target on F5, Inc (NASDAQ:FFIV).
F5 was careful not to update conditions post its last earnings call, but he sensed that demand was vital for Security and Systems.
Supply remains a significant constraint and has not improved materially, but it seems there was improvement at the margin.
F5 highlights solid redesign progress, which should start to help in the FY1Q/CY4Q quarter and ramp across FY23.
Also Read: AI 'Transformed' This Networking Firm. Cisco May Want To Take Note, Analyst Says
In addition, the software/feature work on the new rSeries systems continues to make solid progress and is gradually opening customer sales opportunities.
On Security and Software, F5 is pretty straightforward.
Demand remains strong, the pipeline is robust, and the macro conditions are not impacting the trajectory.
FFIV shares have corrected more than other networking names, and surprisingly, based on his estimates, FFIV trades at a discount to Extreme Networks, Inc (NASDAQ:EXTR) and Juniper Networks, Inc (NYSE:JNPR) on CY23 EV/E and Cisco Systems, Inc (NASDAQ:CSCO) on CY24.
Price Action: FFIV shares traded lower by 2.20% at $142.46 on the last check Friday.

To add Benzinga News as your preferred source on Google, click here.