CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
We keep our 12-month target price at $125, 10.1x our FY 2024 (Sep.) EPS estimate, a discount to its three-year forward average P/E at 14.8x, reflecting our concerns of softness from service provider customers. We cut our FY 2024 EPS estimate by $0.20 to $12.40 and set FY 2025’s at $13.76. FFIV reported Sep-Q operating EPS of $3.50 vs $2.62, $0.29 above the consensus. Sep-Q revenue increased 1% with 11% growth in software revenues and a 27% increase in subscription-based revenue, offset by a 25% decline in systems, reflecting a lower level of backlog-related shipments. We remain negative on FFIV given revenue guidance for FY 2024 of flat to down mid-single digits as customers remain cautious with spending levels for the foreseeable future and the company undergoes a series of “transitions” to its SaaS and managed service offerings.