The tech company reported fiscal 4Q profit and revenue beats
The shares of F5 Networks, Inc. (NASDAQ:FFIV) are set for a higher open, after the software application specialist reported fiscal fourth-quarter earnings of $2.90 per share on $562.7 million in revenue -- more than analysts were expecting. A round of bullish brokerage notes is only adding to the buzz, with FFIV stock up 1.4% in electronic trading.
Drilling down on those bull notes, no fewer than four analysts have raised their price targets on F5 Networks stock this morning. The most optimistic outlook came from Credit Suisse, which boosted its price target to $218 from $216 -- a nearly 35% premium to last night's close at $161.60.
There's plenty of room for more analysts to improve their outlooks on FFIV, especially amid improving fundamental and technical backdrops. While 11 of the 16 brokerages covering the tech stock say it's a "hold" or worse, the consensus 12-month price target sits just above at $175.36.
A continued round of short covering could also fuel more upside for the shares. Although short interest fell 12.2% in the two most recent reporting periods, the 4.33 million shares still dedicated to these bearish bets account for 7.1% of FFIV's available float, or seven times the average daily trading volume.
Looking at the charts, the security was trading in record-high territory as recently as late September, when it topped out at an all-time peak of $199.71 on Sept. 28. And while the shares have pulled back from here amid stiff sector headwinds, they appear to have found a steady foothold in the $161-$165 region -- home to their rising 200-day moving average and a 61.8% Fibonacci retracement of their six-month rally that started in early April.