UPDATE: Bank of America Initiates Aruba Networks at Neutral on Near-Term Headwinds
In a report published Tuesday, Bank of America analyst Tal Liani initiated coverage of Aruba Networks, Inc. (NASDAQ: ARUN) with a Neutral rating and a price objective of $25.00.
In the report, Liani wrote, "Aruba offers best-in-class enterprise WiFi equipment and software and is benefiting from key secular trends, such as mobility, growth in WiFi-only devices, Bring Your Own Device (BYOD), and the consumerization of IT. Our Neutral rating is attributed to a few concerns: the discretionary nature of enterprise WiFi spending in lieu of the slow start to the year, high expectations, a well owned stock, limited upside to margins, and healthy valuation, trading at ~21x 2014E P/E."
Aruba Networks closed Monday at $22.26.
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