UPDATE: Piper Jaffray Lowers PT on Riverbed Technology After In-Line Q4 Results
In a report published Friday, Piper Jaffray reiterated its Neutral rating on Riverbed Technology (NASDAQ: RVBD), but lowered its price target from $22.00 to $20.00.
Piper Jaffray noted, “Consistent with our VAR survey and various channel checks, Riverbed reported inline results, showing respectable q/q and y/y growth. Product and service revenues grew at healthy levels, driven by strong demand for the company's Cascade and Stingray products. Despite the in-line Q4 results, we remain cautious with regards to the WAN Optimization market, which accounted for 91.2% of total product revenue in FY12, and has recorded stagnant growth over the past few quarters. The recent acquisition of OPNET presents a promising future, but integration risk remains, and a wait and see approach seems appropriate. We believe longer term traction in the ADC and NPM/APM markets will accelerate top and bottom line growth. However, over the next 12 months, we believe risks outweigh the potential upside, and recommend investors hold off on adding to positions. Given the WAN Op deceleration, OPNET integration risk, and limited visibility, we are maintaining our Neutral rating on RVBD shares.”
Riverbed Technology closed on Thursday at $20.10.
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