Friday, January 28, 2011

Riverbed Technology (NASDAQ:RVBD) in Multi-Growth Pattern for WAN

Riverbed Technology (NASDAQ:RVBD) is in a multi-year growth pattern for WAN acceleration, according to Needham, which remains positive on the company.

Needham says, "...We have conviction that RVBD is in a multi-year growth pattern for WAN acceleration, as the business driver of datacenter consolidation is still very strong (though years old as a driver). Complementing the “old driver” is cloud-services (large boxes) for both large enterprise and carrier, which is consistently 35-40% of license and accelerating at RVBD....After us being nervous for the MarQ seasonality, RVBD guidance has allayed those concerns, and we believe CY11 will be a strong revenue growth year for Riverbed, which we believe will be a 30%+ revenue grower, a 40%+ EPS grower, and also remains an M&A takeout candidate."

Needham & Company maintains a "Buy" rating on Riverbed Technology (RVBD), which was trading at $36.24, gaining $1.33, or 3.81 percent, as of 2:52 PM EST. Needham has a price target of $48 on Riverbed, boosting it from $32.

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