Riverbed Technology (RVBD) Up 10% on Upgrade

Speaking of analysts....

Riverbed Technology (RVBD) is up strongly today and it appears to be due to an analyst report from Think Equity

• Riverbed (RVBD) shares are sharply higher today after ThinkEquity analyst Jonathan Ruykhaver today raised his rating on the company to Buy from Accumulate, while maintaining his $48 price target.
• Ruykhaver writes that “the WAN optimization secular growth remains strong and Riverbed’s product market leadership appears intact.” He adds that he is encouraged by the company’s “commitment to invest in growth while also targeting operating margin expansion in 2008.” He sees potential earnings upside, and advises that investors should buy the stock at current levels.
  

This reverses a call made in mid October when the stock was $47, and he downgraded on valuation. Finally, an analyst who makes sense with good timing....

I continue to love this space with Riverbed Technology (RVBD) and Blue Coat Systems (BCSI) but they seem to get lumped in with Cisco Systems (CSCO) and persistent fears of 2008 slowdown in corporate spending seems to dog these stocks. I did cut back a bit on my position today on this strength in Riverbed, about 18% of my position and this takes Riverbed Technology back down to a 1.9% type of position for the fund.

Despite the horrendous fall in the stock price, by booking profits during good times and averaging down in the mid $20s range - after todays 10% rise the stock is now "only" at a 4% loss for the fund. Until the space shows material signs of weakness, I will continue to hold these names, although investors have truly trashed the stock(s). I do like Riverbed as the technical leader (although richer in valuation) and Blue Coat as the 'value' play in the space.

Long Riverbed Technology, Blue Coat Systems in fund; long Riverbed Technology in personal account