F5 Networks (NASDAQ:FFIV) Needs to Deliver Big to Maintain Share Price

In order to support their fast-rising share price, Ticonderoga says F5 Networks (NASDAQ:FFIV) will have to continue to deliver "big upside surprises to support the stock price."

Ticonderoga noted, "With F5's stock recently touching an all-time high and now trading at 30x (ex-cash) our FY11 pro forma EPS estimate, which is 25% above the Street, we believe the company needs to continue delivering big upside surprises to support the stock price.

"For the March quarter, we believe F5 Networks' outlook range will surpass the Street revenue estimate of $281.1 million and pro forma EPS projection of $0.85. We are projecting revenue of $307.6 million and pro forma EPS of $1.03, which we believe represents a more realistic estimate versus the Street but will also likely be above the company's 2QFY11 outlook range."

Ticonderoga reiterates a "Neutral" rating on F5 Networks (FFIV), which was trading at $139.29, down $2.49, or 1.76 percent, as of 12:09 PM EST.