UPDATE: Goldman Sachs Removes Ruckus Wireless (RKUS) from Conviction Buy List

(Updated - April 13, 2015 9:37 AM EDT)

Goldman Sachs downgraded Ruckus Wireless (NYSE: RKUS) from Conviction Buy to Buy with a price target of $16 (unchanged). Analyst Simona Jankowski said a survey of value added resellers suggests a soft patch near-term.

"Results from our survey of 22 VARs (value added resellers) from March 2015 suggest a potential soft patch for Ruckus in 1Q and 2Q15, which we think could be due to the pause ahead of E-rate ramping in 2H, as well as ahead of the 802.11ac Wave 2 product cycle. Given the stock’s recent outperformance (up 25% in the last 3 months), we do not think the shares are discounting a potential near-term miss," said Jankowski.

"While overall enterprise WLAN demand remains strong (and is once again a top priority of networking spend this year according to our survey results), we think there may be a share shift to Cisco in conjunction with its 2.5G/5G campus switching product cycle starting this quarter. Indeed, despite strong overall demand for WLAN, our VAR survey suggests Ruckus may be tracking below expectations for 1Q and 2Q, while Cisco is tracking ahead of plan. The VARs in our survey serve small/medium enterprises, which represent the core market for Ruckus," added the analyst.

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 $12.95 yesterday.

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