F5 Networks price target raised to $187 from $170 at Piper Sandler

Piper Sandler raised the firm’s price target on F5 Networks to $187 from $170 and keeps a Neutral rating on the shares. Shares are pointed higher following the outsized EPS upside that was primarily driven by perpetual software, continued tailwinds from the maintenance pricing increase and strong related attach-rates, cost controls, and lower tax, the firm notes. While the SaaS transition within the ongoing transition “should be taken into account and is best for F5 longer-term,” Piper remains concerned with the higher appliance market-exposure, which can create lumpiness in the model.