Buy Aruba Networks (ARUN) on Weakness - Piper Jaffray

Piper Jaffray analyst Troy Jensen trimmed his price target on Aruba Networks (NASDAQ: ARUN) to $26.00 (from $28.00) following Q1 results but maintained his Buy rating telling clients to 'buy on weakness'.

Jensen commented, "ruba reported impressive FQ1 revenues that comfortably exceeded consensus expectations while a 1% top line miss in guidance is likely to weigh on shares. During FQ1, Aruba saw continued execution on its main goals with solid .11ac sales, Instant growth near 100% and continued ClearPass adoption. Meanwhile, gross margins improved 80 bps as the ramp of lower priced APs helped mix and the company saw leverage in its balance sheet growing operating margins 180 bps. While guidance is disappointing, we believe that it is more a reflection of macro trends and less the underlying business, which is being solidly executed. We believe that any share weakness should be viewed as an opportunity to buy the strongest Wi-Fi player at a discounted valuation."

For an analyst ratings summary and ratings history on Aruba Networks click here. For more ratings news on Aruba Networks click here.

Shares of Aruba Networks closed at $21.80 yesterday.

You May Also Be Interested In

• Jefferies Upgrades Husqvarna AB (HUSQB:SS) to Buy
• Canaccord Genuity Downgrades Antofagasta Plc. (ANTO:LN) (ANFGF) to Hold
• Essity AB (ESSITYB:SS) (ESSYY) PT Raised to SEK243 at Barclays