Riverbed (RVBD) Shares Sink as Piper Jaffray Worried About Europe, Deceleration in WAN Optimization Demand
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Price: $16.24 -0.85%
Rating Summary:
14 Buy, 20 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 35 | New: 23
Rating Summary:
14 Buy, 20 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 35 | New: 23
Trade RVBD Now!
Shares of Riverbed (Nasdaq: RVBD) are being sold Wednesday afternoon following some concerning comments and estimate/price target revisions from Piper Jaffray's Troy Jensen earlier. The stock last traded at $16.25, down more than 4.2 percent from Tuesday's closing price.
Jensen said his more cautious view on the company can be attributed to continued fallout in the Euro markets and a slowdown in demand for WAN optimization. The analyst said while a number of companies in Piper Jaffray's coverage universe will see weakness within Europe, Jensen believes Riverbed's "aggressive" second-half guidance leaves more risk to achieve financial targets.
The Piper Jaffray analyst lowered his FY12 sales growth estimate from 15 percent to 12 percent and his EPS estimate from 97 cents to 94 cents. A consensus of analyst estimates currently sits at 96 cents for FY12. Jensen reduced his FY13 sales growth estimate from 17 percent to 14 percent and his earnings estimate from $1.12 per share to $1.04 per share. The Street is looking for FY13 EPS of $1.17.
Jensen cut his 12-month price target on Riverbed shares from $24 to $20 and maintained a Neutral rating.
To track all the market-moving analyst action on shares of Riverbed, visit our Analyst Ratings page.
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Jensen said his more cautious view on the company can be attributed to continued fallout in the Euro markets and a slowdown in demand for WAN optimization. The analyst said while a number of companies in Piper Jaffray's coverage universe will see weakness within Europe, Jensen believes Riverbed's "aggressive" second-half guidance leaves more risk to achieve financial targets.
The Piper Jaffray analyst lowered his FY12 sales growth estimate from 15 percent to 12 percent and his EPS estimate from 97 cents to 94 cents. A consensus of analyst estimates currently sits at 96 cents for FY12. Jensen reduced his FY13 sales growth estimate from 17 percent to 14 percent and his earnings estimate from $1.12 per share to $1.04 per share. The Street is looking for FY13 EPS of $1.17.
Jensen cut his 12-month price target on Riverbed shares from $24 to $20 and maintained a Neutral rating.
To track all the market-moving analyst action on shares of Riverbed, visit our Analyst Ratings page.
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