Riverbed Technology, Inc. (RVBD) slipped 2.0% during the month, [but] their future is bright. They have an upcoming event titled ‘Data Where You Need It; Control Where You Want It.’ At the event, the company will unveil breakthroughs in software defined data center deployments with Granite technology that extend the benefits of the data center to global branch offices. ... Together, these advances enable 100% consolidation of resources to the secure data center and create new possibilities for IT, including instant provisioning of branch offices from the data center and instant restore should disaster occur. Gartner reports the company has a 52% market share in their market—advanced WAN optimization. Revenues have grown from $236 million in 2007 to more than $800 million in the most recent trailing 12 months. That’s a 50% average annual growth rate. Profits have grown by an average of 43% annually over the same period. I expect Riverbed will move back up after next quarter’s results are announced [April 29th]. It would be appropriate to add to or open a new position at the current price level. My earnings estimates are $1.20 in 2013 and $1.50 in 2014. With a P/E ratio of 20x my 12-18 month target price is $30.00 per share. Add shares on the decline. RVBD—Core Position—Strong Buy.”
Eric Dany, Stock Prospector, 4/12/13