UPDATE: Nomura Raises PT on Riverbed Technology on Slower Growth Expectations
In a report published Wednesday, Nomura analyst Stuart Jeffrey reiterated a Neutral rating on Riverbed Technology (NASDAQ: RVBD), and raised the price target from $15.00 to $16.00.
In the report, Nomura noted, “Riverbed missed top-line expectations by 1%, while earnings were in-line. Product revenues were weaker than expected due to lower-than-expected OPNET revenues ($40mn vs. $44mn guidance), due to a weak government vertical, coupled with weaker-than-expected sales execution. Management has pushed out the OPNET merger integration timeline towards year-end, 1-2 quarters later than anticipated. We expect the revenue and operational synergies to be realized sometime in 2014. Management's $265mn-$270mn revenue guidance was below the Street's $275mn expectation. We see few near-term catalysts; limited 2014 visibility. We retain our Neutral on the shares given our expectation for slower topline and earnings growth. We are raising our TP to $16 from $15 as we roll over our valuation methodology on our 2014/15 estimates.”
Riverbed Technology closed on Tuesday at $17.53.
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