F5 (FFIV) shares have more room to run after delivering a strong beat in fiscal Q3 and raising its guidance for the full year, RBC Capital Markets said in a note Monday.
The report said the performance was due to continued multi-cloud adoption through both refreshes and competitive takeouts, the expanding threat landscape, and enterprise AI traction.
The note said the guidance high-end with double-digit revenue growth is now in sight for fiscal 2026 with the guidance raise.
"We feel increasingly confident in F5's execution on its 'refresh plus' cycle opportunity and believe secular drivers lend to product growth durability," the report said.
RBC raised its price target to $508 from $490 and maintained its outperform rating.
"We think the stock has additional room to run due to both continued upside to estimates...and multiple expansion as F5 remains an underappreciated AI beneficiary," the note said.
Price: $409.43, Change: $+1.47, Percent Change: +0.36%