UPDATE: Goldman Sachs Downgrades Ruckus Wireless to Neutral, Reiterates $19 PT as Stock Approaches Price Target

In a report published Tuesday, Goldman Sachs analyst Simona Jankowski downgraded the rating on Ruckus Wireless RKUS from Buy to Neutral, but reiterated the $19.00 price target. In the report, Goldman Sachs noted, “We are downgrading shares of Ruckus Wireless to Neutral from Buy with only 5% upside left to our $19 12-month price target. While we are still positive on the company's long-term trajectory and the secular growth in carrier WiFi, we see that as more fairly reflected in the stock's valuation at a CY14 EV/S of 4.6X and CY15 P/E of 36X. Since our May 17, 2013, upgrade, shares are up 36% versus the S&P 500 up 6%, driven by a solid 2Q, improving carrier spending environment, positive industry datapoints on WiFi adoption, M&A speculation, and expanding comp group multiples. Since the 11/16/12 IPO, Ruckus shares are up 21% vs. the S&P up 28%.” Ruckus Wireless closed on Monday at $18.08.