UPDATE: Piper Jaffray Initiates Ruckus Wireless with Overweight on Attractive Entry Point

In a report published Tuesday, Piper Jaffray analyst Auguste Gus Richard initiated coverage on Ruckus Wireless RKUS with an Overweight rating and $17.00 price target. In the report, Piper Jaffray noted, “Shares have reached new lows due to a Q1 miss and recent lockup release. However, we see this as an attractive entry point ahead of a number of growth drivers. We believe service provider Wi-Fi is taking off as operators move to deploy carrier-grade Wi-Fi in dense settings to handle an ever growing tsunami of data. In addition, we believe new standards like Hotspot 2.0 will simplify the use of Wi-Fi by consumers. We expect the company to announce a number of service provider deals over the next several quarters and deployments next year will act as a catalyst for shares. Moreover, a lot of risk has been eliminated from estimates. While the space will be competitive, Ruckus, as a pure play, is well positioned with a strong product portfolio to benefit from the growth in Wi-Fi offloads.” Ruckus Wireless closed on Monday at $12.62.