F5 Networks, which makes products that manage and route computer network traffic, said its profit rose 19 percent to $22.8 million, or 29 cents per share, as demand appeared to stabilize. It expects a fourth-quarter profit of 40 cents to 42 cents per share, excluding a stock-option expense, while analysts surveyed by Thomson Reuters predict a profit of 38 cents per share.

Analyst estimates typically exclude one-time items.

Wedbush Morgan analyst Rohit Chopra said F5 Network's results were driven by seasonal strength and a stabilizing economy, adding that the company's guidance exceeds his estimates but appears achievable.

"We think the opportunity exists for F5 to regain its momentum as a slate of new products penetrates the market and we continue to monitor the company's progress on this frontier," Chopra said.

Chopra raised his price target to $38 per share from $30 per share, and lifted his fiscal 2009 estimate to $1.60 from $1.54. He maintained a "Neutral" rating.

Ryan Hutchinson, an analyst at Lazard Capital Markets, raised his price target to $43 from $39 and wrote in a note to clients that F5 Networks saw a modest improvement in information technology spending despite customers having more clearly defined budgets.

"If the market further softens, we believe that service revenue, impressive expense management, and sustained consolidation activity in the space will provide near-term support," said Hutchinson, who maintained a "Buy" rating.

Meanwhile, Morgan Keegan analyst Brian Freed revised his fourth-quarter earnings-per-share estimate to 40 cents from 37 cents, and said the only potential drag for the quarter would be weakness in European sales.

"Business trends seem to be improving and should be propelled by product cycle refreshes," he said.

Freed kept his rating at "Market Perform."

Shares of F5 Networks jumped $1.92, or 5.4 percent, to $37.75 in late afternoon trading. Earlier in the session, shares jumped to $38.80, their highest point since November 2007.

The stock has traded between $17.75 and $37.25 in the past year.

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