Piper Jaffray Decreasing 2011 And 2012 Growth Assumptions On F5 Networks

According to Piper Jaffray, F5 Networks (NASDAQ: FFIV) growth assumptions for 2011 and 2012 are decreasing.

Piper Jaffray reported that it is taking a slightly more conservative stance heading into earnings given the disruption in Japan and uncertainty regarding fed spending. “We believe weakness in Japan will account for a 2-3% drag for F5, but anticipate F5 will report results toward the lower-end of guidance due to a robust pipeline heading into the quarter and a strong push in March. Guidance will likely be conservative and slightly below consensus, but at levels already factored into F5's stock. We are lowering our estimates on FFIV, but would be buyers of the stock at current valuations. We remain optimistic on F5 given the company's technological leadership and favorable tailwinds (cloud computing, data center consolidation, wireless data growth) and expect the company will be reporting impressive results again in the 2H of calendar 2011.”

F5 Networks closed yesterday at $93.77.