ThinkEquity Raises F5 Networks (FFIV) Value Estimate To $70

ThinkEquity LLC analysts Jonathan Ruykhaver and Aleksandr (Alex) Zukin reiterated their Buy rating for shares of F5 Networks, Inc. (Nasdaq: FFIV) and raised their value estimate from $61 to $70.

Ruykhaver and Zukin said that F5 Networks is in position to modestly beat Wall Street's expectations.

The analysts believe that demand within the telco vertical is growing because as smartphones are being used by more and more consumers the volume of voice, video, and data traffic being transmitted over wireless networks will increase.

The ThinkEquity LLC analysts wrote, "In light of, in our view, F5's market leadership and strong fundamental positioning in a market exhibiting accelerating growth, we reiterate our Buy rating and increase our per-share fair value estimate to $70 from $61. This valuation is based on a P/E of 27x our FY11 EPS estimate of $2.58, or a P/E at a premium to our long-term growth estimate of 18% to reflect what we view as the company's leadership position."