Riverbed Technology Lowered to “Sell” at Deutsche Bank (RVBD)
Riverbed Technology (NASDAQ:RVBD) was downgraded by investment analysts at Deutsche Bank from a “hold” rating to a “sell” rating in a note issued to investors on Tuesday, TheFlyOnTheWall.com reports.
The analysts wrote, “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 (NASDAQ:RVBD) traded down 4.59% on Tuesday, hitting $15.78. The stock had a trading volume of 1,936,790 shares. Riverbed Technology has a 52-week low of $13.83 and a 52-week high of $24.23. The stock has a 50-day moving average of $16.47 and a 200-day moving average of $15.64. The company has a market cap of $2.592 billion and a P/E ratio of 570.34.
Riverbed Technology (NASDAQ:RVBD) last posted its quarterly earnings results on Tuesday, July 30th. The company reported $0.23 earnings per share for the quarter, beating the analysts’ consensus estimate of $0.22 by $0.01. The company had revenue of $250.00 million for the quarter, compared to the consensus estimate of $257.72 million. During the same quarter last year, the company posted $0.23 earnings per share. Riverbed Technology’s revenue was up 25.9% compared to the same quarter last year. Analysts expect that Riverbed Technology will post $0.95 EPS for the current fiscal year.
Other equities research analysts have also recently issued reports about the stock. Analysts at JMP Securities downgraded shares of Riverbed Technology from an “outperform” rating to a “market perform” rating in a research note to investors on Monday. They now have a $19.00 price target on the stock. Separately, analysts at BMO Capital Markets raised their price target on shares of Riverbed Technology from $5.50 to $6.50 in a research note to investors on Friday, August 9th. They now have an “outperform” rating on the stock. Finally, analysts at Oppenheimer upgraded shares of Riverbed Technology from a “market perform” rating to an “outperform” rating in a research note to investors on Monday, August 5th. They now have a $20.00 price target on the stock.
Two analysts have rated the stock with a sell rating, seventeen have issued a hold rating, ten have issued a buy rating and one has assigned a strong buy rating to the company’s stock. The company presently has an average rating of “Hold” and an average target price of $17.94.
In other Riverbed Technology news, CEO Jerry M. Kennelly unloaded 100,000 shares of Riverbed Technology stock on the open market in a transaction that occured on Friday, August 16th. The shares were sold at an average price of $16.63, for a total value of $1,663,000.00. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link.
Riverbed Technology, Inc (NASDAQ:RVBD) has developed solutions to the fundamental problems associated with information technology (IT) performance across wide area networks (WANs).
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