Needham & Company Upgrades F5 Networks (FFIV) to Buy; Shares Oversold

Needham & Company upgraded F5 Networks (NASDAQ: FFIV) from Hold to Buy with a price target of $85.00, saying concerns about virtualization look overblown and shares look oversold.

"While we still have concerns about F5’s virtualization positioning and technology, we believe the fears and concerns are over- discounted and the potential strength of the new product launched in CY4Q and CY1H is underestimated," analyst Alex Henderson said.

He continued, "We think the stock has limited downside risk here and has already discounted continuing weak results and investor fears around virtualization. While we were an early proponent of these concerns, we think they have been over played. Moreover, we think the strong new product cycle should give sales growth a lift as we move through CY3Q and CY4Q, helping growth re-accelerate and as a result diminishing these concerns and helping the valuation rebound."

For an analyst ratings summary and ratings history on F5 Networks click here. For more ratings news on F5 Networks click here.

Shares of F5 Networks closed at $68.80 yesterday.

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