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Jefferies Cuts PT on Aruba Networks, Sees Stable Macro Environment

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Analysts at Jefferies on Friday, March 28, 2014, released a new price target regarding Aruba Networks (NASDAQ: ARUN).

Equity analyst George C. Notter at Jefferies lowered the firm's price target from $22.50 to $21.50. The stock is currently trading for $18.99 per share. The firm has cited numerous reasons related to its price target decision.

“The reduction is mainly driven by a modest pullback in the comp group valuation metrics in recent weeks. Our revenue and EPS projections for 2015 remain unchanged – $799.7 million and $1.00 (ex-stock comp), respectively.”

The firm also stated that it likes the new head of sales, John DiLullo. The company then went on to say, “In aggregate, we found his view fairly convincing – essentially, Aruba's sales and marketing organization hasn't traditionally been run as professionally and efficiently as it could be.”

Below are some reasons why Jefferies picked its price point: • Accelerating wireless LAN upgrade cycle leads to growing addressable market. • Aruba's innovative product offerings continue to drive market share growth. • Macro-economic environment remains stable. • FY 2015 Sales: $799 million; Target Multiple: 18.1x calendar 2015 adjusted EPS; Target Price: $21.50 Aruba Networks provides enterprise wireless LAN and edge access equipment that securely connects wireless users to corporate IT networks.

Latest Ratings for ARUN

DateFirmActionFromTo
Nov 2014Imperial CapitalMaintainsOutperform
Nov 2014JP MorganMaintainsNeutral
Nov 2014Bank of AmericaDowngradesNeutralUnderperform

View More Analyst Ratings for ARUN
View the Latest Analyst Ratings

Posted-In: George C. Notter Jefferies John DiLulloAnalyst Color Price Target Analyst Ratings

 

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