Needham & Company Trims Estimates on Aruba Networks (ARUN); Remains Attractive Long-Term Story

May 16, 2012 7:50 AM EDT Send to a Friend
Get Alerts ARUN Hot Sheet
Price: $21.58 -0.46%

Rating Summary:
    19 Buy, 15 Hold, 1 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 25 | Down: 20 | New: 23
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Needham & Company maintains a 'Buy' on Aruba Networks (NASDAQ: ARUN) price target lowered from $28 to $25.

Analyst, Richard Valera, said, "ARUN has lost about a third of its value in the last 6 weeks as concerns about the company’s growth rate, competition and broader macro issues have weighed on the shares. While we see some of these concerns as unfounded (i.e., weakness at Ubiquiti (Nasdaq: UBNT)) or likely already baked into current share price (i.e., deceleration from 30%+ to 20%+ growth), we acknowledge the potential for some EU-related weakness, which could make our prior 4QF12 estimates challenging. As such we are trimming our 4QF12 estimates in front of the quarter but maintain our Buy rating based on what we see as ARUN’s favorable position to benefit from the secular growth of enterprise mobility and BYOD."

FY12 EPS estimate lowered from $0.65 to $0.63 and FY13 from $0.80 to $0.79. FY12/13 revs cuts by $3 mln to $515.5 mln and $622.1 mln respectively.

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 $15.95 yesterday.




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