Riverbed (RVBD) shares have spiked this morning, as the Street celebrates strong Q3 results, a 2-for-1 stock split and a flurry of analyst upgrades. The WAN optimization software company posted revenue of $147.8 million with profits of 34 cents a share, ahead of the Street at $135.3 million and 27 cents.
The company expects Q4 revenue of $155 million to $158 million, ahead of the Street at $146 million, with profits of 27 cents, above the Street at 24 cents.
- Wedbush analyst Rohit Chopra this morning raised his rating on the shares to Outperform from Neutral, with a new target of $60, up from $44. “Results and guidance were significantly ahead of our high-on-the-Street estimates,” he writes. “We have always believed the company was the premier operator in the segment; but in our view, valuation was an obstacle. With the significant adjustment in estimates due to the better than expected results and outlook, we think valuation is reasonable and there may even be upside to our revised estimates.”
- Canaccord analyst Paul Mansky raised his rating to Buy from Hold, setting a $60 target. “Admittedly, we missed what has been an impressive move in the stock,” he writes. “However, with early evidence that multi-quarter catalysts will effectively pull our 2012 model into 2011,� we are revisiting our traditionally more valuation-sensitive stance on the stock.”
- Jefferies analyst William Choi upped his rating to Buy from Hold; his new target is $60, up from $46. “Riverbed is distancing itself from competition as the clear market leader in WAN Optimization, and is enjoying good demand,” he writes. “New customer adds remain healthy and its data center products are gaining traction.”
RVBD is up $8.38, or 18.3%, to $54.25.
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