Analysts bumped down their price targets on F5 Inc (NASDAQ:FFIV) following the Q1 beat and Q2 guidance below consensus.
- RBC Capital analyst Matthew Hedberg maintained Sector Perform on F5 and cut the price target from $220 to $210 (7% upside).
- The quarter was "solid," with a 19% increase in product revenue and a 47% increase in the software business. However, the management's FY22 revenue growth guidance cut reflects the increasing supply chain challenges and warrants a more "conservative approach."
- Citi analyst Jim Suva lowered the price target on F5 from $215 to $210 and reiterated a Neutral.
- While the company's December results beat expectations, the March quarter outlook will likely disappoint investors with projected sales of 9% and earnings 30% below expectations, Suva notes.
- The analyst points out that all the disappointment is attributable to supply chain constraints.
- Credit Suisse analyst Sami Badri lowered the price target on F5 from $278 to $270 (37.5% upside) and maintained an Outperform.
- While F5 reported, non-GAAP revenues/EPS above his estimates led by strong software growth, Systems performance, and Government business lagged.
- Supply chain weakness and the degree of disruption F5 called out did not match up with the analyst's checks, a negative surprise, leading to management revising down their full-year 2022 guidance.
- Barclays analyst Tim Long maintained Overweight on F5 and slashed the price target from $234 to $232 (18% upside).
- Jefferies analyst George Notter said his analysis leads him to believe that other vendor peers like Arista Networks Inc (NYSE:ANET), Cisco Systems Inc (NASDAQ:CSCO), Juniper Networks Inc (NYSE:JNPR), and Ciena Corp (NYSE:CIEN), have "relatively lower" supply chain risk and that he thinks "it's more of an F5 issue" than a "supply chain 'canary' in the coal mine."
- Notter cut his FY22, FY23 revenue, and EPS estimates for F5 while keeping a $200 price target and Hold rating on the shares.
- Price Action: FFIV shares traded lower by 11.19% at $196.39 on the last check Wednesday.
