WAN Optimization Low Hanging Fruit has been Picked: RVBD, FFIV, ARUN

Jefferies’ George Notter is assigning an Underperfom rating to Riverbed Technology (NASDAQ:RVBD) and Hold to F5 Networks (NASDAQ:FFIV) and Aruba Networks (NASDAQ:ARUN). Notter feels shares are priced to0 high.

Notter says, Riverbed (NASDAQ:RVBD) is at the top the “WAN optimization” market with 50% share, but may see slowing growth, as “it’s a second derivative business.” He believes for market growth, IP traffic must continue to grow.

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Notter also says, “These themes aren’t new, however, our fear is that some of the ‘low-hanging fruit’ in the WAN optimization market has already been picked and market growth rates will diminish.”

Riverbed Technology’s (NASDAQ:RVBD) stock is down 0.36% to $22.25 on the news. Shares are down 35.72% year to date. The stock has traded in a 52-week range between $19.93 and $44.70.

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