FBN Reiterates Price Target On Riverbed Technology

In a note out Monday, FBN Analyst Shebly Seyrafi retained his Sector Perform rating and $21 price target on Riverbed Technology, Inc. RVBD.

Some of the positives:

"1) RVBD's SteelCentral Performance Management (which includes OPNET) revenue grew 21% as thissegment has grown to 24% of revenue from 21% a year before
2) SteelFusion (formerly Granite) nearly doubled Y/Y
3) government revenue grew by around 10% Y/Y
4) aggressive repurchase of its shares as it repurchased 5M shares (3% of shares outstanding) last quarter"

Seyrafi also notes the company is exploring "strategic and financial alternatives," which may mean a closer look at various offers for the company from Elliott Management, and it has initiated a restructuring plan to reduce annual costs by $20-25 million and to improve annual operating margin by 1-2pp.

Shares of Riverbed Technology, Inc. closed at $18.94 on Friday.