F5 (FFIV) Enhances Security Suite With Latest Acquisition

F5 Inc. (NASDAQ:FFIV) is one of the Trending AI Stocks on Wall Street. On September 11, Raymond James analyst Simon Leopold reiterated a Market Perform rating on the stock.

The firm reiterated its rating, viewing the acquisition of CalypsoAI as a positive development that adds to the company’s suite of advanced security solutions.

“We see the acquisition as a positive that enhances F5’s leading suite of advanced security solutions. CalypsoAI is consistent with the theme of F5’s most recent acquisitions which have all been security focused (acquired Mantis Networks in August, Insight Engines in June, and LeakSignal in March). The transaction value is relatively modest compared to some of its acquisitions (Shape Security for ~$1.02B and NGINX for $670M), and F5 has sufficient cash flow to complete the deal while continuing to buy back stock. Although the acquisition is expected to be immaterial to revenue and operating results, we believe it enhances F5’s security platform and makes it incrementally attractive to the growing number of organizations that are now implementing their GenAI and LLM initiatives.”

F5 Inc. is a multi-cloud application delivery and security solutions provider that provides networking, unified, app management, and security solutions.

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Disclosure: None.