UPDATE: Goldman Sachs Upgrades Ruckus Wireless on Strong Secular Growth in WiFi

In a report published on Friday morning, Goldman Sachs analysts upgraded Ruckus Wireless RKUS from Neutral to Buy rating while maintaining a price target of $19.00. The report stated, "We expect two sets of catalysts in the next few months, including (1) earnings upside in the quarterly reports, and (2) carrier WiFi wins and deployments. Our estimates are above consensus, with upside driven by continued share gains in enterprise WiFi, a market growing in the mid-tohigh teens over the next two years with Ruckus gaining share off a low base of 4%. In addition, we expect to see carrier WiFi wins for Ruckus, including tier-1s such as AT&T and possibly Vodafone joining already announced wins such as Sprint and Time Warner Cable. While 2013 will be largely characterized by trials, we expect 2014 to see large scale deployments of small cells including WiFi, with Ruckus as a key beneficiary. We raise our FY13/14/15 EPS to $0.17/$0.29/$0.51 from $0.14/$0.27/$0.48 on higher gross margins as we model improved traction with the SmartCell Gateway." Ruckus Wireless closed on Thursday at $13.30.