UPDATE: Deutsche Bank Initiates Ruckus Wireless at Hold on Valuation and Competition

Deutsche Bank initiated coverage on Ruckus Wireless RKUS with a Hold rating and a $20 price target. Deutsche Bank noted, "The proliferation of mobile and portable computing devices, as well as the overall steady growth of data consumption, has led to growing demand for wireless solutions within the enterprise and for additional small-cell capacity to augment existing service provider networks. We believe that Ruckus currently offers the best solution for addressing this demand in service provider networks and this contention is borne out in the accelerated growth of their sales in this vertical. However, given their current valuation at 5.4X CY13E sales and the increased competition in the enterprise space." Ruckus Wireless closed at $18.96 on Monday.