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Valued at a market cap of $14.5 billion, F5, Inc. (FFIV) provides multi-cloud application security and delivery solutions, helping organizations deploy, secure, and optimize applications across on-premises and cloud environments. It offers various products and services, including web application firewalls, traffic management systems, and professional support, catering to enterprises, governments, and service providers worldwide.
Shares of the Seattle, Washington-based company have outperformed the broader market over the past 52 weeks. FFIV stock has surged 47.7% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 31.3%. In 2024, shares of FFIV are up 38.7%, compared to SPX's 25.5% gain on a YTD basis.
In addition, the computer networking company has also outpaced the Technology Select Sector SPDR Fund's (XLK) 27.3% return over the past 52 weeks and a 22% YTD gain.
F5 shares jumped over 10% following the company's Q4 earnings release on Oct. 28 which exceeded expectations, with adjusted EPS of $3.67 and revenue of $746.7 million. The company also reported impressive software revenue growth of 19% year-over-year, which boosted investor confidence in its transition to a more software-centric business. Additionally, the announcement of a $1 billion share repurchase program boosted investor sentiment.
For the current fiscal year, ending in September 2025, analysts expect FFIV's EPS to grow 5.4% year-over-year to $11.01. The company's earnings surprise history is promising. It beat the consensus estimates in the last four quarters.
Among the 12 analysts covering the stock, the consensus rating is a “Hold.” That’s based on 11 “Holds” and one “Moderate Sell.”
On Oct. 29, BofA analyst Tal Liani raised F5 Networks' price target to $180, while keeping an “Underperform” rating on the stock. The analyst highlighted strong software growth of 19% year-over-year in Q4, but raised concerns over low expected growth and the quality of the company's revenue, making the stock unattractive.
As of writing, FFIV is trading above the mean price target of $233.11. The Street-high price target of $250, implies a marginal potential upside from the current price.
