F5 (FFIV) shares fell more than 19% intraday even though fiscal fourth-quarter revenue rose 13% year over year to $917 million and adjusted EPS of $4.42 beat estimates. Investors reacted to guidance suggesting slower growth and shrinking gross margins, and Piper Sandler downgraded the stock from overweight to neutral. The article argues the sell-off may be overdone, since shares were up nearly 80% year to date as of the previous close and were vulnerable to profit-taking. Evercore ISI, Barclays and Morgan Stanley raised their price targets after the report, and the analyst consensus target stood at $457.44 versus a price near $370.
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