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To: stockman_scott who wrote (42803)	6/3/2008 9:19:46 AM
From: bob zagorin	Read Replies (1) \| Respond to of 57684

gsco: sell rvbd.. Riverbed Technology, Inc. EPS (FY Dec) 2008E $0.09, 2009E $0.23 Sell/Neutral (RVBD) 17.10 Source of opportunity We are initiating on Riverbed shares and adding it to the Americas Sell List with a $15 price target. We believe Riverbed’s market share has likely flattened out, and the WAN optimization market growth rate will slow below Street expectations. Our thesis is based on (1) the integration of WAN optimization into routers, (2) the advent of desktop virtualization, which diminishes the need for WAN optimization as it reduces traffic over the WAN, and (3) increasing competition. Even though we expect Riverbed’s GAAP EPS CAGR to be very high at around 40% over the next 5 years, we believe that it is not enough to support its rich 75X CY2009E P/E.