F5 Networks (NASDAQ:FFIV) Margins Under Pressure in First Half

Acknowledging they had underestimated the strength and sustainability of F5 Networks' (NASDAQ:FFIV) recovery, Canaccord added in the first half of 2011 they still see their EBIT margin under pressure.

Canaccord says, "We wholly underestimated the rate/sustainability of F5’s recovery and associated up-swell of investor sentiment in 2010. However, EBIT margin appears to carry risk of trending flat to down in the first half (CY) while revenue laps stiffer comparisons. Currently the most consensus long in our group, this exposes stock performance to a greater interpretive element that we’d prefer to avoid."

Canaccord Genuity reiterates a "Hold" rating on F5 Networks, which closed Friday at $144.17, gaining $0.22, or 0.15 on the day. Canccord raised their price target on F5 Networks from $120 to $150.