FBR Capital Downgrades Riverbed Technology (RVBD) to Market Perform

February 8, 2013 8:53 AM EST Send to a Friend
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Price: $20.43 -0.44%

Rating Summary:
    8 Buy, 33 Hold, 0 Sell

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    Up: 13 | Down: 16 | New: 41
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FBR Capital downgraded Riverbed Technology (NASDAQ: RVBD) from Outperform to Market Perform with a price target of $20.00 (from $28.00) following Q4 results which missed expectations.

"While we had some concerns initially around the OPNET acquisition (October 2012), it appears Riverbed has an even tougher road ahead than we previously thought due to integration issues related to the acquisition, coupled with headwinds on its core WAN optimization business," the firm comments. "On paper, the deal continues to have merits, and Riverbed may ultimately prove the naysayers wrong by successfully integrating the organization and reaccelerating growth through cross-selling opportunities. However, we do not have confidence at this point that Riverbed can pull this off with minimal disruption, which could make 2013 a tough year for the company (and its investors). To this point, we prefer to watch this name from the sidelines while this transformation takes place."

FBR lowered FY13 pro forma EPS estimate from $1.15 to $1.10.

For an analyst ratings summary and ratings history on Riverbed Technology click here. For more ratings news on Riverbed Technology click here.

Shares of Riverbed Technology closed at $20.10 yesterday.


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