UPDATE: Deutsche Bank Downgrades Riverbed Technology to Sell, Lowers PT on Lowered FY14 Estimates

In a report published Tuesday, Deutsche Bank analyst Brian Modoff downgraded the rating on Riverbed Technology RVBD from Hold to Sell, and lowered the price target from $14.00 to $11.00. In the report, Deutsche Bank noted, “We are downgrading RVBD from Hold to Sell; lowering our FY14 est and PT from $14 to $11. Basis for our underweight thesis is our research noting a diminishing value perception for 'premium-priced' WAN Opt (designed for an era of congested links and complex client/server apps). Today's ‘browser based' apps running on IP/Ethernet offer a cost-competitive alternative to features found in +$10K WAN Opt systems. Riverbed lacks a compelling nextphase growth story in our view (we note muted prospects for Opnet, Granite). We see negative risk/reward at current levels: stock trading at mid-teens consensus rev growth expectation for a directionally slowing core business.” Riverbed Technology closed on Monday at $16.54.