F5 Earnings: Frosty Demand Conditions Show Signs of Thawing as F5 Scores a Strong Result

We are maintaining our $170 fair value estimate for narrow-moat F5 after the firm reported third-quarter financial results largely in line with our expectations. While the firm has navigated a tough macro environment over the last few quarters, management highlighted early signs of demand stabilization, a positive indicator for upcoming quarters. Results, coupled with the easing macro pressures, appeared to impress investors, as shares jumped more than 10% afterhours. Following the afterhours pop, F5’s shares are now trading in 3-star territory and we view them as fairly valued.