UPDATE: Sterne Agee Upgrades NetGear to Buy on Risk/Reward Post Pullback

Sterne Agee upgraded NetGear

from Neutral to Buy and raises the price target from $37.00 to $41.00. Sterne Agee noted, "We are upgrading our rating on NTGR shares to Buy from Neutral. We believe the recent pullback is overdone and find the risk-reward attractive. We see several 2H catalysts/drivers: (1) ramp of 802.11ac or Gigabit Wi-Fi; (2) 4G LTE gateway opportunity helped with its acquisition of SWIR's data card business; and (3) recovering storage business, though small, is accretive to margins. Moreover, we believe CSCO selling Linksys helps. We see upside to $41 based on a 13.5x multiple on CY14 EPS." NetGear closed at $32.55 on Thursday.