UPDATE: Goldman Sachs Initiates Silver Spring Networks with Neutral on Secular Growth Position

In a report published Monday, Goldman Sachs analyst Simona Jankowski initiated coverage on Silver Spring Networks

with a Neutral rating and $19.00 price target. In the report, Jankowski noted, “We see Silver Spring Networks as well positioned for strong secular growth in the emerging smart grid ecosystem, with our estimated CY12-CY15 billings compound annual growth rate (CAGR) at 22%. However, we view the investment positives of Silver Spring's strong secular growth potential, platform business model, and significant backlog as being balanced by risks associated with the inherent lumpiness in deployments and the regulatory and legal uncertainties.” Silver Spring Networks closed on Friday at $19.21.