William Blair Reinstates Meru Networks (MERU) at Outperform; 'Heavily Discounted'

William Blair reinstates coverage on Meru Networks (NASDAQ: MERU) with a Outperform.

Analyst Jason Ader said while the stock is speculative based on its small size and lack of profitability, he believes it "provides an attractive, low valuation avenue for playing the red-hot enterprise Wi-Fi market."

The analyst said shares are trading at a "heavily discounted" 2013 enterprise-value-to-sales multiple of 0.65 times. Peers like Aruba (Nasdaq: ARUN) and Ruckus (Nasdaq: RKUS), trade at 4.1 times and 6.3 times 2013 sales, respectively, he notes.

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

Shares of Meru Networks closed at $4.53 yesterday.

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