UPDATE: Morgan Stanley Initiates Ruckus Wireless at Overweight on WiFi Outlook
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.
Latest Ratings for RKUS
|Feb 2015||Deutsche Bank||Maintains||Hold|
|Jan 2015||Citigroup||Initiates Coverage on||Buy|
|Nov 2014||RBC Capital||Initiates Coverage on||Outperform|
© 2015 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.