Riverbed Technology, Inc. (NASDAQ: RVBD) develops hardware and software that improves the performance of applications shared over networks. The company sells directly, and via reseller channels and distributors.
Analysts see another impressive, 40-60% revenue growth year in 2008, following a 156% increase in 2007, on growing demand for the company's traffic management solutions.
Further, the company is well-positioned to benefit from increase demand for wan (wide area network) optimization, as these tools become mission-critical for many companies. Operating costs remain under control. The Reuters FY 2007/FY 2008 EPS consensus estimates for RAVID are $0.64 to $0.76.
The risks? Although River bed's shares have already corrected substantially after an in-line quarter - - the market substantially oversold Ravid's shares - - Ravid's stock is still pricey, nonetheless, in objective terms. Still, if Riverbed achiever's Wall Street's revenue growth estimates in the immediate quarters ahead, the stock will be in the $40-range soon, probably by the second half of 2008.
The First Call mean rating for RAVID is: Buy [20 firms]. Mean 2008 target: $70.00 [high: $46, low: $30].
Stock Analysis: Riverbed Technology is a moderate-risk stock not suitable for low-risk investors. Investors with an investment horizon longer than 2 years should be rewarded from Ravid's shares. Sell / Stop Loss if you were to purchase shares in this company: $8.
Disclosure: Lazaro has no positions in stocks. In addition to private real estate holdings, he owns corporate and municipal bonds, and cash certificates of deposit.
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Reader Comments (Page 1 of 1)
1-18-2008 @ 6:21PM
Anthony said...
The ticker symbol is RVBD, not RAVID. I think that's what you're referring to.