Market Overview

UPDATE: Morgan Stanley Initiates Ruckus Wireless at Overweight on WiFi Outlook

Related RKUS
Why Ruckus Wireless (RKUS) Could Be Positioned for a Slump? - Tale of the Tape
Ruckus (RKUS) Crumbles: Stock Falls by 8.0% - Tale of the Tape

Morgan Stanley initiated coverage on Ruckus Wireless (NYSE: RKUS) with an Overweight rating and a $22 price target.

Morgan Stanley commented, "RKUS is the cleanest-play on the emerging adoption of WiFi by service providers, a market which we forecast grows 49% p.a. through ‘16 to $1.8B, from ~ $250M in ‘11. We expect WiFi to become the network augmentation strategy of choice as carriers manage the rapid growth of mobile data traffic but are limited by the scarcity of licensed spectrum. We calculate it would take a minimum of 7.6M access points (APs) for just one service provider to cover the world with WiFi, a cumulative TAM of $6.4B, based on our proprietary analysis of the 400 largest urban areas on the world. We believe service providers are just beginning multi-year deployments of WiFi."

Ruckus Wireless closed at $18.96 on Monday.

Posted-In: Morgan StanleyAnalyst Color Initiation Intraday Update Analyst Ratings

 

Most Popular

Related Articles (RKUS)

Around the Web, We're Loving...

Partner Network

Get Benzinga's News Delivered Free