Evercore ISI upgraded F5 Networks (NASDAQ:FFIV) to Outperform from In Line and raised its price target to $475 from $320.
The firm cited AI inference traffic exposure as a key factor. F5 reached about $50 million in AI bookings for the first half of fiscal 2026.
Evercore expects the AI application delivery controller market to scale to $1.5 billion by 2028, with F5 capturing $400-$600 million.
F5's systems business has seen seven consecutive quarters of double-digit growth, driven by AI workloads and data sovereignty trends.
The stock trades at 20.5x CY2027 P/E, below peers' 33x. Shares are at $362.58, near a 52-week high, up 60% in six months. 11 analysts have revised earnings upward.
