Goldman Sachs Adds Ruckus Wireless (RKUS) to Conviction Buy List
- Wall St. falls as data adds to growth worries; biotechs down
- UPDATE: Tesla (TSLA) Tops Q1 EPS by 3c; Plans Q2 Production of ~20,000 Vehicles
- Fitbit (FIT) Tops Q1 EPS by 7c; Issues Mixed Outlook
- TripAdvisor (TRIP) Misses Q1 EPS by 14c
- After-Hours Stock Movers 05/04: (EPE) (ZNGA) (WTW) Higher; (FRSH) (RRTS) (FIT) Lower (more...)
Goldman Sachs upgraded Ruckus Wireless (NYSE: RKUS) from Buy to Conviction Buy with a price target of $18.00. Analyst Simona Jankowski noted strong secular growth with margin expansion.
"Ruckus shares have underperformed the market, down 20% YTD vs. the S&P up 8% and the Russell 2000 flat despite two consecutive beat and raise quarters, expectations for 25% revenue growth this year, and a discounted multiple. We believe this has been due to investor concerns regarding Wi-Fi technology commoditization and higher than anticipated opex this year. However, we expect strong secular tailwinds, share gains, and recent new product introductions with high margin profiles to drive estimate upside and multiple re-rating for Ruckus, which we view as the best secular growth story in our group," said Jankowski.
Shares of Ruckus Wireless closed at $11.35 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- The Priceline Group (PCLN) PT Lowered to $1,600 at RBC Capital
- Sagent Pharmaceuticals (SGNT) PT Trimmed at Piper Jaffray, But 'Overweight' Maintained on Pipeline
- Guggenheim Reiterates Buy on Zoetis (ZTS) Following 1Q Beat and Raise
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS View, Hot Upgrades, Upgrades
Related EntitiesGoldman Sachs Conviction Buy List, Goldman Sachs, Standard & Poor's
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!