Analyst Meta Marshall from Morgan Stanley maintained a Hold rating on F5 Networks and decreased the price target to $336.00 from $352.00.
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Meta Marshall has given his Hold rating due to a combination of factors influencing F5 Networks’ current market position. The company recently experienced a breach, which has reset its valuation, creating a potential opportunity for investors. However, Meta Marshall suggests that it is prudent to remain cautious and observe the situation over the coming months to fully understand any lingering effects of the breach.
Despite the challenges, there are promising developments in the form of AI use cases, such as AI data delivery and runtime security, which could enhance F5 Networks’ prospects by 2026. The company needs to demonstrate consistent mid-single-digit growth to capitalize on these opportunities. While the current valuation at approximately 18x FY26 P/E is seen as an attractive entry point, the recommendation is to wait for more clarity on the breach’s impact before making any investment decisions.
In another report released today, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $318.00 price target.