F5 Networks (FFIV
) was beaten down Tuesday and Wednesday to a 4 month low on mis-information that demand has been weak and possible downgrades could be seen. The information was regarding the European channel which is only 17% of F5's revenues, however demand in U.S. remains very strong. Piper Jaffray cleared out this false information making a call to F5 Networks and also to reiterate their positive outlook on the stock. They believe demand are exceptionally strong in U.S. during the March quarter, and cleared up misunderstanding of weakness in EMEA which may be true, however only 17% of F5's revenues come from there and will be insignificant because of strong U.S. demand. Maintain belief that they will beat estimates and guide above consensus for June quarter as high-end products are gaining momentum and this will most likely continue through out 2007. Piper Jaffray has an outperform rating on the stock and $100 target.
Disclosure: Author has a long position in FFIV.
FFIV 1-yr chart