Wedbush Maintains Outperform on Aruba Networks

Wedbush is out with its report today on Aruba Networks

, maintaining Outperform. In a note to clients, Wedbush writes, "Responding to a question regarding his apparent cautious stance at recent investor conferences, CEO Dominic Orr said his comments were misinterpreted and that the strong momentum seen in FQ3 has continued into FQ4. While overall IT budgets remain flattish y/y, he indicated that WLAN remains a high priority, and he reiterated his contention that Aruba does even better in tight-budget environments, given the high ROI of WLAN. Maintain our OUTPERFORM rating and $30 PT. Our PT is derived from our 10-year DCF and implies a ~6.0x multiple to our CY12 revenue estimate of $568mn." At the time of posting, shares of ARUN were trading at $27.10, down 0.95% from Thursday's close.