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June 22 (Bloomberg) -- F5 Networks Inc. gained 1.8 percent after Barclays Capital increased its target stock price and rating, citing growing demand for the Seattle-based company’s networking products.
F5 rose $1.81 to $104.81 at 4 p.m. in New York on the Nasdaq Stock Market. The stock dropped 21 percent this year before today.
The company will benefit as more businesses turn to so- called cloud services, or the delivery of software, storage and computing power over the Internet, the Barclays analysts said in a report today. The pullback in shares this year is a buying opportunity, Barclays said, raising the target price to $125 from $110 and increasing the rating to “overweight.”
“We believe F5’s revenue pipeline and market is healthy,” the analysts said. “Trends such as server virtualization and cloud architectures are driving the need for application delivery controllers, traffic management, and virtual storage and security products.”
--Editors: Lisa Rapaport, Romaine Bostick
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