Needham & Company Maintains a 'Buy' on Aruba Networks (ARUN); Attractive Valuation, But Macro Environment in EU Still Challenging
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Price: $24.67 --0%
Rating Summary:
10 Buy, 19 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 13
Rating Summary:
10 Buy, 19 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 13
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Needham & Company maintains a 'Buy' on Aruba Networks (NASDAQ: ARUN) price target lowered from $25 to $20.
Analyst, Richard Valera, said, "Aruba is in the process of transitioning from a 30-40% top line growth story to a ~20% top line growth story due to a number of factors, in our view. Aside from the law of large numbers, we believe these factors include: increased competitive focus from industry leader Cisco (Nasdaq: CSCO) as Wireless becomes a larger piece of its business; a challenging macro environment in the EU; and, finally, an increased focus by Aruba on “strategic” sales led by the company’s new ClearPass products, which have longer sales cycles and less up-front revenue than traditional WiFi-only sales, but provide architectural “lock-in” and potential for greater long-term revenue. With the shares now trading at 13x our cash-adjusted C2013 estimates, we believe if the company can execute to these moderated growth expectations the shares should see upside from current levels."
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.
Analyst, Richard Valera, said, "Aruba is in the process of transitioning from a 30-40% top line growth story to a ~20% top line growth story due to a number of factors, in our view. Aside from the law of large numbers, we believe these factors include: increased competitive focus from industry leader Cisco (Nasdaq: CSCO) as Wireless becomes a larger piece of its business; a challenging macro environment in the EU; and, finally, an increased focus by Aruba on “strategic” sales led by the company’s new ClearPass products, which have longer sales cycles and less up-front revenue than traditional WiFi-only sales, but provide architectural “lock-in” and potential for greater long-term revenue. With the shares now trading at 13x our cash-adjusted C2013 estimates, we believe if the company can execute to these moderated growth expectations the shares should see upside from current levels."
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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