UPDATE: Goldman Sachs Downgrades Aruba Networks to Neutral

Goldman Sachs reduced its rating on Aruba Networks

from Buy to Neutral but raised its price target from $20 to $23. Goldman Sachs said, "We remain above consensus on FY13 revenues, but our EPS estimates are only inline as we expect ongoing investment in the business to keep operating margins range-bound. While we think further multiple expansion is warranted from current levels, given recent WiFi datapoints confirm our above-consensus estimates for the October/January quarters, our new $23 12-month price target leaves limited upside following share appreciation of 63% (vs. S&P 500 +4%) since the August low. Since adding Aruba to the Buy List on February 11, 2010, the shares are +98% versus the S&P 500 +35%." Aruba Networks closed at $21.51 on Wednesday.