Auriga Reiterates a 'Buy' on Aruba Networks (ARUN); Strength of Underlying Fundamentals

Auriga reiterates a 'Buy' on Aruba Networks (NASDAQ: ARUN) price target of $22.50.

Analyst, Kevin Dede, said, "Aruba Networks reported 3Q12 sales and earnings of $131.9M and $0.16 meeting our and consensus expectations last night. We had forecast $131.0M in sales, and Street estimates called for 131.7M where the company had offered guidance of $130-132M and $0.16 for the quarter. Operating margin compressed only 40 bpts to 20.6% from the January quarter although gross margin was down 180 bpts to 72.4% in April vs. 74.2% in January as the company made some swift expense adjustments during the quarter to meet expectations. Severe pressure on Aruba shares over the past two months appears to be the result of concerns regarding the macro environment and specifically the European theater, where even Aruba experienced a slight downturn, which had the effect of reducing growth in Europe during the April quarter from exceeding the corporate average to keeping pace with the corporate average according to commentary on last night's conference call."

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 $15.30 yesterday.

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