RBC Sees Opportunity in F5 Inc. (FFIV) After the Breach-Driven Pullback. Here’s Why

F5 Inc. (NASDAQ:FFIV) is among the best software infrastructure stocks to buy according to hedge funds. On January 5, RBC Capital Markets upgraded F5 to Outperform from Sector Perform and raised its price target to $325 from $315, implying a further 27% upside potential.

This upgrade came after substantial erosion in the stock’s value over the last few months following a security incident in October. According to RBC’s analysis, the financial impact of the incident for the company will be lower than initially estimated. Moreover, the firm also believes that consensus now factors in the headwinds, which reduces downside uncertainty around the near-term execution.

For context, F5 Inc. (NASDAQ:FFIV) disclosed a severe, long-term security breach on October 15, 2025, raising serious concerns about the risk to critical infrastructure. The breach was first detected in August 2025 and was primarily related to the stealing of source code and internal data associated with BIG-IP products. While the company has been taking steps to mitigate risks and rebuild trust, the share price has declined by up to 35% since the incident became public.

As of the close of January 5, F5 Inc.’s (NASDAQ:FFIV) stock is down approximately 25% since mid-October, and RBC views this correction as a favourable entry opportunity.

Apart from this incident-related concern, RBC highlighted several medium-term growth drivers that could support a re-rating. These include potential tailwinds from cloud repatriation, early monetization opportunities from AI-driven workloads, and F5’s continued emphasis on security-oriented solutions. The firm also pointed to increased private data center investment as a favorable demand driver.

F5 Inc. (NASDAQ:FFIV) provides core application delivery and security infrastructure through its Application Delivery and Security Platform (ADSP). The company enables the delivery and security of applications and APIs across on-premises, edge, and hybrid and multi-cloud environments.

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Disclosure: None. This article is originally published at Insider Monkey.