Goldman Sachs Boosts Numbers on Aruba (ARUN) Following Positive Analyst Day
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Price: $24.67 --0%
Rating Summary:
10 Buy, 19 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
10 Buy, 19 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Goldman Sachs raised estimates and its price target on Buy-rated Aruba Networks (NASDAQ: ARUN) from $27 to $28 following the analyst day Wednesday in New York.
The firm notes Aruba raised its long-term gross margin target to 67% to 70% from 65% to 67% on a more favorable product mix and its operating margin target to 20% to 23% from 19% to 20%.
Goldman said the long-term impact of the event will be an increased focus on the revenue growth opportunity following potential margin clarification. "We believe Aruba's margin targets were largely in line with expectations, especially the 2HFY12/FY13 targets. With that said, we had been more optimistic on the operating leverage Aruba could produce, especially in the long term," the analyst said.
They raised FY13E-FY14E revenue by an average of 3% and lower FY13F/FY14F EPS to $0.83/$1.02 from $0.88/$1.08, including a higher tax rate impact of ($0.02) in FY13E/FY14E.
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 $22.47 yesterday.
The firm notes Aruba raised its long-term gross margin target to 67% to 70% from 65% to 67% on a more favorable product mix and its operating margin target to 20% to 23% from 19% to 20%.
Goldman said the long-term impact of the event will be an increased focus on the revenue growth opportunity following potential margin clarification. "We believe Aruba's margin targets were largely in line with expectations, especially the 2HFY12/FY13 targets. With that said, we had been more optimistic on the operating leverage Aruba could produce, especially in the long term," the analyst said.
They raised FY13E-FY14E revenue by an average of 3% and lower FY13F/FY14F EPS to $0.83/$1.02 from $0.88/$1.08, including a higher tax rate impact of ($0.02) in FY13E/FY14E.
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 $22.47 yesterday.
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