F5 Networks assumed with a Buy at Needham

Needham assumed coverage of F5 Networks (FFIV) with a Buy rating and $320 price target The company reported “strong” fiscal Q2 results with upside to guidance, the analyst tells investors in a research note. The firm says an easing competitive environment is driving a strong refresh of legacy products and expansions to F5’s flagship BigIP to meet growing demand for enterprise private cloud capacity, largely by governments, telecom, and very large enterprises. While investors might pick at the company’s slowing Software segment revenue to a two-year, butt management attributed this to renewal seasonality and expects a surge in second half, adds Needham.