Barclays on U.S. Data Networking & Wireline Equipment: Rebalancing Networking Preferences
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Price: $12.47 --0%
Rating Summary:
2 Buy, 12 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 11 | New: 14
Rating Summary:
2 Buy, 12 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 11 | New: 14
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Barclays on U.S. Data Networking & Wireline Equipment: Rebalancing Networking Preferences
Analyst, Jeff Kvaal, said, "We rebalance our networking names- We are upgrading Polycom (Nasdaq: PLCM) and ShorTel (Nasdaq: SHOR) to OW from EW, and downgrading Riverbed (Nasdaq: RVBD) to EW from OW. Given a range of checks through the quarter, we revisit our networking names and prioritize those which we think are likely to lead through a difficult economy 2H11 and into 2012. We conclude healthy videoconferencing and unified communications trends should allow Polycom and ShoreTel to lead their networking peers-we upgrade each to 1-OW. We think Riverbed's underlying drivers are intact, but demand may be slower to recover in a downturn, particularly in Europe. We downgrade RVBD to Equal Weight."
"Polycom: Resilient trends, partnerships, and share gains lead upgrade to OW: Our checks are bullish on Polycom and indicate an underlying shift in videoconferencing usage-it is no longer just above cost savings, but revenue enhancing opportunities...We lift our estimates toward consensus. Our target rises to $28.
ShoreTel: Healthy sales and a trough valuation drive our 1-OW rating: Healthy
unified communications trends, expanding distribution, and share gains should allow SHOR to outperform its peers...We think shares at 0.6x EV/S embed a drastic cut in estimates and further downside is likely limited. Our target remains $10.
Riverbed: Risk to branch office spending, multiple, and Europe drive 2 EW. We think data center trends will drive WAN optimization penetration higher, evidenced by RVBD's 50% annual growth in 2Q U.S. sales...We lower our target to $22 (22x P/E).
Analyst, Jeff Kvaal, said, "We rebalance our networking names- We are upgrading Polycom (Nasdaq: PLCM) and ShorTel (Nasdaq: SHOR) to OW from EW, and downgrading Riverbed (Nasdaq: RVBD) to EW from OW. Given a range of checks through the quarter, we revisit our networking names and prioritize those which we think are likely to lead through a difficult economy 2H11 and into 2012. We conclude healthy videoconferencing and unified communications trends should allow Polycom and ShoreTel to lead their networking peers-we upgrade each to 1-OW. We think Riverbed's underlying drivers are intact, but demand may be slower to recover in a downturn, particularly in Europe. We downgrade RVBD to Equal Weight."
"Polycom: Resilient trends, partnerships, and share gains lead upgrade to OW: Our checks are bullish on Polycom and indicate an underlying shift in videoconferencing usage-it is no longer just above cost savings, but revenue enhancing opportunities...We lift our estimates toward consensus. Our target rises to $28.
ShoreTel: Healthy sales and a trough valuation drive our 1-OW rating: Healthy
unified communications trends, expanding distribution, and share gains should allow SHOR to outperform its peers...We think shares at 0.6x EV/S embed a drastic cut in estimates and further downside is likely limited. Our target remains $10.
Riverbed: Risk to branch office spending, multiple, and Europe drive 2 EW. We think data center trends will drive WAN optimization penetration higher, evidenced by RVBD's 50% annual growth in 2Q U.S. sales...We lower our target to $22 (22x P/E).
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