Riverbed (RVBD) Could Experience More Weakness Gov. Cuts Spending

February 8, 2013 12:46 PM EST
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Price: $20.99 --0%

Rating Summary:
    8 Buy, 33 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 30 | Down: 30 | New: 23
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Yesterday Riverbed Technology (NASDAQ: RVBD) Q4 reported results, which led to a major selloff in the stock. Commenting on developments, analysts at Goldman Sachs expressed concern about weakness in federal spending.

"Although we believe Federal data center consolidation projects do provide Riverbed a higher level of budget priority, we believe overall Federal weakness could continue as the possibility of sequestration grows," said analyst Kent Schofield. "This gives us further confidence that an easy 1Q12 comp and Granite growth will still only lead to mid-single digits yoy product revenue for WAN Op. Meanwhile, Riverbed's Cascade/Stingray businesses continue to perform well and take share from small run-rates."

Goldman Sachs has a Neutral rating on Riverbed Technology (NASDAQ: RVBD) with a modified price target of $19.00 (from $20.00).

For an analyst ratings summary and ratings history on Riverbed Technology (NASDAQ: RVBD) click here. For more ratings news on Riverbed Technology click here.

Shares of Riverbed Technology closed at $20.10 yesterday.

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