- Piper Jaffray downgrades Riverbed Technology (Nasdaq: RVBD) from Overweight to Neutral. Price target $28. Piper analyst says, "We are downgrading our rating on RVBD shares to Neutral based purely on valuation.
- We anticipate the company will continue to execute well and upside to March quarter and 2010 estimates is highly likely, but we believe this is already priced into the stock. We believe several investors are valuing RVBD shares based on a scenario of $1.00 in EPS for 2010 and this compares to consensus estimates of roughly $0.85. Given the upside scenario already priced into RVBD shares, we think it will be hard for the stock to outperform on a relative basis and believe a Neutral rating is warranted."
Similarly, Atheros Communications (ATHR) was downgraded by Barclays for identical reasons.
- Atheros Communications (ATHR) downgraded at Barclays to Equal Weight from Overweight on valuation. 2010 and 2011 EPS estimates set at $2.20 and $2.40, respectively. Maintain $40 price target.
Long both names mentioned in fund; no personal position