Wednesday, January 5, 2011

UBS (NYSE:UBS) Raises PT, Estimates on Riverbed Technology (NASDAQ:RVBD)

Citing its increase in market share from the 34 percent in 2Q10 to 38 percent in the 3Q10, UBS increased their price target and EPS estimates on Riverbed Technology (NASDAQ:RVBD).

UBS said, "Our industry checks showed that RVBD had a solid 4Q10 and now project sales of $160M vs. our prior estimate of $158M. RVBD continued to benefit from market share gains in 4Q after its share in the WAN Optimization market increased to 38% in 3Q10 from 34% in 2Q10.

"We slightly raise 2011 and 2012 pro-forma EPS to $0.86 and $1.15 from our prior estimates of $0.85 and $1.10. We now forecast operating margin of 30% and 32% for 2011 and 2012, slightly up from our prior estimates of 29.7% and 31.7%."

UBS maintains a "Neutral" on Riverbed Technology, which closed Tuesday at $37.28, losing $0.54, or 1.43 percent. They raised their price target on Riverbed from $30 to $40.

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