Oppenheimer Remains Bullish on Ruckus Wireless (RKUS) Following US/European Checks

Oppenheimer reiterates an Outperform rating and $14.00 price target on Ruckus Wireless (NYSE: RKUS) based on US/Europe checks. Analyst Ittai Kidron believes consensus 3Q15 sales expectations for $95.8 million (+8.4% QoQ) may be too aggressive, and is lowering estimates to reflect the mixed near-term checks.

Kidron commented, "Based on our US/Europe checks, we see risk to Ruckus's 2Q15/3Q15. Our checks showed flattish US demand, tougher competition, more price discounting, and a small QoQ pullback in the channel's growth expectations. And while there were positive signs that the K-12/E-rate spending pause has started to clear, it's not yet robust and suggests most approved schools are waiting for July to begin installations. Europe's also a rekindled concern. We're lowering estimates accordingly. That said, we see the challenges as short-lived as we expect the K-12 reversal to build momentum, and are positive on recent Xclaim data points, 802.11ac wave-2 opportunity, and the new partnership with Juniper. Maintain Outperform, but wait for results/guidance to be set."

For an analyst ratings summary and ratings history on Ruckus Wireless click here. For more ratings news on Ruckus Wireless click here.

Shares of Ruckus Wireless closed at $10.24 yesterday.

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