I have run hot and cold on F5 (NASDAQ:FFIV)
over the years, but that's largely because the Street plays a
cat-and-mouse game with the shares based on the near-term prospects for
product revenue growth. I liked the shares back in late January when
skepticism was running high, and the nearly one-third move in the stock
since then has been gratifying to watch.
That said,
F5's problems with product growth remain and I don't share the
confidence of the bullish sell-side analysts that a new product cycle is
going to lead to a sustainable growth recovery, or that a move towards
security is the panacea for what ails F5. I do believe this is a
well-run business with a sticky, high-margin software/service component,
not to mention a lot of options for M&A. Below $100, I'd seriously
consider these shares again, but above $120, I'm not a big fan.
Continue here:
F5 Networks - Where Do We Grow From Here?
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