Riverbed Technology Inc. Analyst Roundup

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Riverbed Technology, Inc. RVBD traded higher Thursday on news that it would undertake a comprehensive review of strategic options.  This was welcome news to activist investor Elliot Management.

 

Jesse Cohn, portfolio manager at Elliott Management, commended “the Board for initiating a strategic review” and he believed “that Riverbed is a great company with products customers value.”  Elliot Management has made “a $21 bid for the company, and our team and advisors look forward to completing our confirmatory diligence in an expedited fashion.”

 

Analysts had a less than enthusiastic view on the stock. Nomura felt the financial and strategic options for Riverbed “seem limited” and Citigroup downgraded the stock from Buy to Neutral.

 

William Blair - $15-$21 Price Range, Market Perform

William Blair saw a downside of $15 and upside of $21 for the stock and cut its Rating from Outperform to Market Perform.

 

FBN Securities - $20 Price Target, Sector Perform

 

"We retain our Sector Perform rating and $20 PT on RVBD after this morning’s preannouncement of a 5% revenue shortfall (using the high-end), the announcement of a restructuring plan to reduce costs (we estimate around 3%),and the announcement of a comprehensive review of 'strategic and financial alternatives' to 'enhance shareholder value'."

 

Lake Street Capital Markets - $20 Price Target, Hold

 

"Based on shortfalls versus outlook the past two quarters, management does not appear to have a good handle on the macro trend in its primary business. Performance management (30 percent of revenue) results are unable to counter the WANOP softness. Having said that, however, the new willingness to explore strategic alternatives should help support the shares."

 

Riverbed Technology, Inc. closed at $18.59, up 2.82 percent.

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Posted In: Analyst ColorDowngradesAnalyst RatingsCitigroupElliott ManagementFBNJesse CohnLake Street CapitalNomuraWilliam Blair
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