logo
  Join        Login             Stock Quote

Analyst Sees Upside to F5 Networks (FFIV) Q1 Guidance

 November 15, 2012 04:03 PM
 


(By Balaseshan) FBN Securities analyst Shebly Seyrafi said the recent guidance provided by Cisco Systems Inc. (NASDAQ: CSCO) and NetApp Inc. (NASDAQ: NTAP) may suggest upside to F5 Networks Inc.'s (NASDAQ: FFIV) first quarter guidance of 13% to 15% year-over-year growth.

Seyrafi retained his "Sector Perform" rating and $100 price target on F5 Networks following its Analyst's Day. The company provided no real update on the current quarter but did note that its pipeline is "solid".

[Related -Citrix Systems, Inc. (NASDAQ:CTXS): A Look At Opportunities And Threats]

The analyst remains neutral as the company previously noted a more challenging environment for US enterprise and telecommunications deals (especially $1 million-plus deals), and there could be some pause in front of the large appliance refresh that is coming soon.

The new TMOS upgrade (Solar v. 11.3) will add 76 new features and should also be coming out by the end of the year, Seyrafi noted. FFIV is striving to accelerate its license growth over the next year, partly by increasing its headcount (sales headcount is now at 998, up 19% year-over-year).

Over the coming months, FFIV will be updating all of its BIG-IP appliances. The analyst noted the 1600 (1Gbps throughput) will be replaced by a 2000 (5Gbps), the 3600/3900 (2/4Gbps) will be replaced by a 4000 (10Gbps), the 6900/8900 (6Gbps/20Gbps) will be replaced by the 5000/7000 (40Gbps each), and the 11000/11050 will be replaced by the 10000 series (80Gbps).

[Related -Cisco Systems, Inc. (NASDAQ:CSCO): What Cisco May Add To Next-Gen UCS?]

The analyst expects most of the refreshes to occur by the end of the year, with the exception of the 5000 and 7000 series which should occur in early/mid-2013.

FFIV believes that its application delivery networking (AND) market will grow from $5 billion in 2012 to $14 billion in 2016, and with the addition of other markets like service provider, and security it is projecting a TAM of $19.6 billion in 2016.

FFIV is trading down 0.75% at $86.84 on Thursday.

iOnTheMarket Premium
Advertisement

Advertisement


Post Comment -- Login is required to post message
Name:  
Alert for new comments:
Your email:
Your Website:
Title:
Comments:
 

rss feed

Latest Stories

article imageChart Says This Retailer's Comeback Isn't Finished

One of the surprises, at least on the surface, of the market's recent swoon was the outperformance of read on...

article imageETF Performance Review: Major Asset Classes | 19 Dec 2014

It’s all about real estate investment trusts (REITs) these days when it comes to bullish performance among read on...

article imageOil and Global Stock Markets Rebounding Sharply

So far so good on our expectation of a 4 to 5% pullback and then a resumption of the bull read on...

article imageGrading the FOMC

Love its members or loathe them, you have to admire the gradual impact the policy-making committee has had read on...

Advertisement
Popular Articles

Advertisement
Daily Sector Scan
Partner Center



Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.