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UPDATE: Goldman Sachs Initiates Ruckus Wireless at Neutral on Valuation

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Goldman Sachs initiated coverage on Ruckus Wireless (NYSE: RKUS) with a Neutral rating and a $20 price target.

Goldman Sachs said, "We see Ruckus as able to deliver sector-leading top-line growth (CY11-15E CAGR of 38%) on strong secular growth in the Service Provider (SP) and Enterprise Wi-Fi segments, with potential gross margin expansion and operating leverage driving even faster earnings growth (CY11-15E net income CAGR of 59%). However, the sharp rise in the shares since the Nov. 16 close (+55% vs. S&P +4%) makes the risk/reward more balanced at current levels in our view, with RKUS now at a CY13 EV/S multiple of 5.9X."

Ruckus Wireless closed at $18.96 on Monday.

Latest Ratings for RKUS

DateFirmActionFromTo
Nov 2014RBC CapitalInitiates Coverage onOutperform
Oct 2014Morgan StanleyUpgradesUnderweightEqualweight
Sep 2014SunTrust Robinson HumphreyInitiates Coverage onNeutral

View More Analyst Ratings for RKUS
View the Latest Analyst Ratings

Posted-In: Goldman SachsAnalyst Color Initiation Intraday Update Analyst Ratings

 

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