F5 transferred with Hold rating at Needham

Needham transferred coverage of F5 (FFIV) with a Hold rating and no price target The company reported another quarterly beat on systems hardware, the analyst tells investors in a research note. The firm believes F5 is seeing “strong pipeline generation complemented by improved close rates, expansion rates, and competitive takeouts.” However, Needham remains uncertain what the company’s systems growth will look like after the refresh and are not yet convinced AI tailwinds “can move the needle.”