UPDATE: Deutsche Bank Reiterates Hold Rating, Raises PT on Riverbed Technology Following Negative Q3 Pre-Announcement

In a report published Friday, Deutsche Bank analyst Brian Modoff reiterated a Hold rating on

, and raised the price target from $16.00 to $20.00. In the report, Deutsche Bank noted, “RVBD negatively pre-announced Q3 results; now expecting Q3 non-GAAP revs: $276 m to $277 m, vs prior: $285 m to $291 m. Management noted that the lowered Q3 rev outlook mainly reflects weak demand for RVBD's WAN Opt, etc –consistent with our view around structurally challenged IT demand for premium-priced WAN Opt. RVBD also narrowed Q3 non-GAAP EPS guide to $0.30 to $0.31 vs prior $0.30 to $0.32; noting a plan to reduce annual costs by $20 m to $25 m. RVBD's Board is looking for strategic alternatives. We lower our forward estimates, but increase our PT from $16 to $20 – to reflect the event-driven investor interest in the stock, given the $21 activist's bid.” Riverbed Technology closed on Thursday at $18.59.