Deutsche Bank Raises Price Target on Riverbed Technology (RVBD), Growth Story Slows

Deutsche Bank is maintaining its Hold rating on shares of Riverbed Technology (NASDAQ: RVBD) while raising its price target from $31 to $36.

The company released its Q2 results with earnings inline with expectations and revenues slight lower at $170 million. RVBD claimed that the miss was due to EMEA sales execution issues.

Guidance for Q3 was set at $184-$189 million in revenue and $0.21-$0.22 in EPS. Deutsche states that the guidance represents incremental growth in its core business, and tougher comps entering into the second half of the year.

The firm notes that Riverbed’s Q2 results are consistent with its latest checks at Cisco Live.

An analyst at Deutsche Bank comments, "While we are constructive on several new use cases in Riverbed’s portfolio (Cloud Storage, Akamai revenue-sharing opportunity etc), we remain with our neutral 12 month outlook and Hold rating, while we continue to gain clarity on the company’s CY12+ growth opportunities, especially in the Cloud and Web acceleration space."

The firm's current 2011 and 2012 proforma EPS estimates for 2011 and 2012 are $0.86 and $1.08. Revenue estimates for the two years are $726.1 million and $917.7 million.

For more ratings news on Riverbed Technology click here and for the rating history of Riverbed Technology click here.

Shares of Riverbed Technology closed at $41.40 yesterday.

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