UPDATE: Wedbush Maintains Outperform Rating, Lowers PT for Aruba Networks

In a report published earlier today, Wedbush Securities Inc. maintained its Outperform rating for Aruba Networks, Inc.

and lowered its price target from $22.00 to $20.00. Wedbush went on to say “As expected, the company saw weakening demand in Southern Europe mid-way through the quarter but was able to toggle to other regions late in the quarter, which resulted in a more skewed linearity. We believe FQ4 guidance, which represents growth of ~20% (26-28% ex the Chinese service provider business), is appropriately conservative as it accounts for deceleration in parts of Europe, unpredictable sales cycles, and uncertainty in public sector spending. Lastly, we believe investors will view the departure of COO Hitesh Sheth as a near-term negative, but the company should fill the position within the next few months. While we are concerned about near-term macro headwinds, we believe the company remains well positioned given its ability to achieve industry-leading growth rates. Given attractive valuation and the potential for a share buyback, we advise longer-term investors seeking a strong secular growth story to own the name.” Aruba Networks, Inc. closed yesterday at $15.30.