Market Overview

UPDATE: Bank of America Merill Lynch Initiates Coverage on Riverbed Technology


In a report published Thursday, Bank of America Merrill Lynch analyst Tal Liana initiated coverage on Riverbed Technology (NASDAQ: RVBD) with a Neutral rating, establishing a $22.00 price objective.

According to the report, revenue growth is attributed partly to weak comps and a bounce back from the lows, following the completion of the sales restructuring. It also is believed some of it is related to a sector-wide tide in Q4, with analyst's expectations for solid results from F5, Juniper, Control4, Fortinet and others.

“[RVBD's] Management's key points were as follows: a) management rejects Elliott's offer to buy the company at $19 per share. b) It also disagrees with Elliott's demands to cut opex, which would imply exiting one of the product lines or changing the salesforce structure significantly, which management refuses to pursue. c) On the contrary, management believes that its recently announced strategy is sufficient and has already proven effective in Q4,” the report noted. “We remain somewhat skeptical on the sustainability of the trends, yet believe the company's core and new businesses carry some intrinsic value, which we think will help keep the stock at or above current levels.”

RVBD closed Wednesday at $20.11 with shares trading up at 1.62 percent.

Latest Ratings for RVBD

Dec 2014MaintainsNeutral
Oct 2014MaintainsHold
Oct 2014MaintainsHold

View More Analyst Ratings for RVBD
View the Latest Analyst Ratings

Posted-In: Bank of America Merrill Lynch Tal LianaAnalyst Color Initiation Analyst Ratings


Related Articles (RVBD)

View Comments and Join the Discussion!

Latest Ratings

WENMorgan StanleyMaintains22.0
XGNCantor FitzgeraldInitiates Coverage On18.0
LOOPRoth CapitalInitiates Coverage On14.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at

Benzinga's Top Initiations

UPDATE: Bank of America Merrill Lynch Upgrades Western Digital