Bank of America Raises PO on Riverbed Technology to $31

Bank of America has published a research report on Riverbed Technology RVBD and has raised the price objective from $27 to $31 to reflect a recent increase in the company's earnings. In the report, Bank of America writes, "We have no visibility into near term results, but continue to maintain our below consensus estimates for the year, reflecting our concern of growth concentration in government sales, which we expect to decline in the coming quarters. We highlighted in the past that strong government sales (up 57% in the first three quarters of the year) mask underlying lackluster trends in other verticals, which account for 85% of total revenues. We maintain the same methodology for deriving our PO, and roll the estimates one year forward. Our new PO is based on 1.2x PEG (equating to roughly 24x P/E) using our 2013 EPS forecast of $1.26. We maintain Neutral, as we believe it is important to balance short term risks with the longer term growth potential." Bank of America maintains its Neutral rating on Riverbed Technology, which is currently trading down $0.22 from yesterday's $29.41 closing price.