Management at Riverbed Technology (RVBD)
has definitely put forth the effort to try to rally the troops and get
the sell-side to take a more positive view of the company's growth
potential. Given real issues in WAN optimization demand, not to mention a
history of blaming "sales execution" for weak quarters and a
disappointingly slow integration of Opnet, I can understand why the
Street is responding with a "show me" valuation on these shares.
I
have my doubts about both the quality of management at Riverbed and the
company's overall business plan. While demand for performance
optimization and management is not going away, I do have my doubts about
how Riverbed will fare against the likes of Cisco (CSCO), F5 (FFIV), and Citrix (CTXS)
as the market evolves. If you believe that Riverbed can do what it says
it will and deliver high single-digit free cash flow growth, though,
these shares do look undervalued enough today to be worth a close look.
Follow this link to the full article:
Riverbed Underrated, Or Perpetually Underperforming?
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