After already doubling year-to-date, Riverbed Technology
(Nasdaq: RVBD) is up another 20 percent today after blow-out
results after the close.
Riverbed reported third quarter EPS of $0.34, 7 cents better than
the Wall Street consensus of $0.27. Revenue for the quarter was
$147.8 million, which compares to the estimate of $135.28 million.
Riverbed also sent investors into a frenzy with a 2-for-1 stock
split announcement, which is effective November 1.
The strong results lead to three upgrades on Wall Street today and
a number of price target hikes.
- FBR Capital = "This Rocket Ship Has Much More Fuel Left in
its Tank. With organizations continuing to put much of their
focus on optimization... we believe it is only the early innings
of the Riverbed growth story." Reiterating Outperform rating,
raises price target from $46 to $58.
- Needham - "it is our understanding that roughly 50% of RVBD
revenue is tied to VMW projects, and we believe datacenter
refresh and cloud projects are driving strong results." Maintain
Buy, price target raised from $38 to $64.
- Goldman Sachs - "Riverbed stands out as one of the strongest
secular growers in the cloud era." Maintained Neutral rating,
raising price target from $36 to $49.
- Canaccord Genuity - "catalysts will effectively pull our 2012
model into 2011. ... Our price target assumes a ~7x C2011 revenue
multiple. Using F5's 8x multiple as the high water mark would
suggest a :stretch case of $70." Upgrade from Hold to Buy, target
raised to $60.
- Wedbush - "investors looking to take advantage of network
computing and increasing traffic over networks should own
Riverbed." Upgrade form Neutral to Outperform, target increased
from $44 to $60.
- Jefferies - "Riverbed is distancing itself from competition
as the clear market leader in WAN Optimization, and is enjoying
good demand. Data center based products contribute ~33% of sales,
up from ~25% a year ago." Upgrades from Hold to Buy, raises price
target from $46 to $60.