Goldman Sachs Adds Ruckus Wireless (RKUS) to Conviction Buy List
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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.
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Related EntitiesGoldman Sachs Conviction Buy List, Goldman Sachs, Standard & Poor's
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