UPDATE: JP Morgan Raises PT to $30, Maintains Overweight on Riverbed

JP Morgan reiterates its Overweight rating on Riverbed (NASDAQ: RVBD) and raises its price target to $30 from $29 as outlook for 2012 remains optimistic despite expected pressure on HDD margins.

JP Morgan says, "We calculate that the maximum margin impact from higher HDD pricing should be no greater than 50bps and we believe that 30bps is more likely. This assumes a 20% premium over normal HDD prices. We also note the apparent rapid recovery of hard drive production, which suggests any impact Riverbed may indicate in Q4 earnings will be short lived."

RVBD closed at $26.97 per share on Friday.