Needham & Company Downgrades Riverbed Technology (RVBD) to Buy, But Remians Bullish Into Q3 Results
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Price: $20.99 --0%
Rating Summary:
5 Buy, 27 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 7 | Down: 12 | New: 10
Rating Summary:
5 Buy, 27 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 7 | Down: 12 | New: 10
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Needham & Company downgraded Riverbed Technology (NASDAQ: RVBD) from Strong Buy to Buy but raises its price target from $25 to $27. The firm said "appreciation since initial recommendation reduces upside potential" was the reason for the downgrade.
Commenting on third quarter results expected on Wednesday October 17th, the firm notes: "We have been consistent in our concern for weak economic conditions and our caution on making Buy recommendations against this backdrop. We have taken the tack of looking for companies with internal dynamics that can offset the rough economy and provide improving results. We think Riverbed fits that bill and we expect this to be reflected in solid 3Q results and a solid 4Q guide. Riverbed is coming off very depressed 1H numbers and should produce solid sequential growth and solid year over year growth."
Needham & Company said ramping sales of new products should offset weak economic conditions. In addition, Cisco and Juniper are helping Riverbed's results. "Cisco is sharply downsizing its WAN Op and ADC businesses, throwing its 30% plus installed base up for grabs. Juniper bought the StringRay code for $75 million with $3 million of license revenues kicking in in 3Q and agreed to recommend Riverbed products to its channel," the analyst notes.
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 $21.97 yesterday.
Commenting on third quarter results expected on Wednesday October 17th, the firm notes: "We have been consistent in our concern for weak economic conditions and our caution on making Buy recommendations against this backdrop. We have taken the tack of looking for companies with internal dynamics that can offset the rough economy and provide improving results. We think Riverbed fits that bill and we expect this to be reflected in solid 3Q results and a solid 4Q guide. Riverbed is coming off very depressed 1H numbers and should produce solid sequential growth and solid year over year growth."
Needham & Company said ramping sales of new products should offset weak economic conditions. In addition, Cisco and Juniper are helping Riverbed's results. "Cisco is sharply downsizing its WAN Op and ADC businesses, throwing its 30% plus installed base up for grabs. Juniper bought the StringRay code for $75 million with $3 million of license revenues kicking in in 3Q and agreed to recommend Riverbed products to its channel," the analyst notes.
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 $21.97 yesterday.
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