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Radware falls after customer makes licensing deal with competitor

Radware (RDWR) is sinking after Juniper (JNPR) and Riverbed (RVBD) announced a licensing deal. Under the terms of the deal, Juniper will license Riverbed's application delivery controller, or ADC, technology, called Stingray, for about $75M. Juniper has previously utilized Radware's ADC, called AppDirector. In a statement, Radware said that its ADC software application would continue to be incorporated into Juniper's MX-Series routers. However, in a note to investors earlier today, research firm Wedbush responded to the news of the Juniper-Riverbed deal by lowering its price target on Radware to $38 from $42. Wedbush thinks that the deal creates some risk for Radware, even though Juniper said that its relationship with Radware hasn't changed, according to the firm. Furthermore, Juniper explained that Radware's product would be geared towards the carrier market, while Riverbed's product would be marketed to data centers and enterprises, Wedbush added. Nevertheless the firm thinks that Juniper now appears more committed to Riverbed than Radware, and it lowered its estimates on Radware, but maintained an Outperform rating on the stock. In early trading, Radware dropped $2.59, or 7.02%, to $34.32.