F5 Networks stock price target lowered by Piper Sandler due to security breach

Published 28/10/2025, 13:56
F5 Networks stock price target lowered by Piper Sandler due to security breach

Investing.com - Piper Sandler has reduced its price target on F5 Networks (NASDAQ:FFIV) to $277.00 from $355.00 while maintaining a Neutral rating on the stock. According to InvestingPro data, analyst targets for F5 currently range from $260 to $390, with the stock showing signs of being slightly overvalued based on Fair Value analysis.

The adjustment follows F5’s fourth-quarter results, which Piper Sandler described as "relatively solid" with strength in ADC systems, despite the company’s recently announced security breach. The company maintains impressive gross profit margins of 81% and holds more cash than debt on its balance sheet, according to InvestingPro analysis, which offers additional insights through its comprehensive Pro Research Report.

The research firm noted that F5 Networks faced a "no-win scenario" heading into the earnings report, as the company needed to balance its guidance against the impact of the security incident.

F5’s fiscal year 2026 guidance came in below expectations, with both revenue and operating profit margin forecasts missing analyst projections, resulting in an earnings per share initial guide approximately 8% below consensus.

Piper Sandler believes F5 has "taken the right approach of cutting expectations once," but suggests the stock will likely remain "range-bound at a lower level" until next quarter provides more clarity on the breach’s impact.

In other recent news, F5 Networks reported robust fiscal fourth-quarter 2025 results, with earnings per share of $4.39, surpassing the forecast of $3.97. The company also exceeded revenue expectations, achieving $810 million compared to the anticipated $794.86 million. Despite the positive earnings and revenue results, a security incident previously announced had some negative impact on the company’s performance. RBC Capital responded by lowering its price target for F5 Networks from $350.00 to $315.00, while maintaining a Sector Perform rating. William Blair, on the other hand, reiterated its Market Perform rating for the company, acknowledging the strong execution demonstrated in the recent quarter. These developments highlight the company’s ability to deliver strong financial results despite challenges.

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