UPDATE: Wedbush Downgrades Aruba Networks to Neutral on Change in Competitive Environment
In a report published Friday, Wedbush analyst Rohit Chopra downgraded the rating on Aruba Networks (NASDAQ: ARUN) from Outperform to Neutral, and lowered the price target from $20.00 to $15.00.
In the report, Chopra noted, “Results and guidance were weak due primarily to a recent and significant step up in competition on the part of Cisco which has resulted in longer sales cycles, lost deals and discounting. Our OUTPERFORM rating was based on our belief that Aruba's technology lead would allow them to outgrow its larger rivals in the attractive WLAN market but this now appears to be coming into question. Bundling has been a long established practice by Cisco, however, in April Cisco began extending its bundling to encompass its datacenter products along with its wired and wireless solutions which have caused customers to re-evaluate resulting in elongated sales cycles.”
Aruba Networks closed on Thursday at $17.61.
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.