UPDATE: BMO Capital Markets Reiterates Market Perform Rating, Raises PT on Aruba Networks on Valuation

In a report published Friday, BMO Capital Markets reiterated its Market Perform rating on Aruba Networks ARUN, and raised its price target from $22.00 to $25.00. BMO Capital Markets noted, “Aruba put together another solid quarter, with sales of $155M exceeding our/consensus $152M estimate. EPS of $0.22, topped consensus of $0.19, although it includes $0.02 from a lower tax rate. The highlight of the quarter was the reacceleration in product growth, always an encouraging sign for a growth company, and it reflects strong secular demand for wireless LAN as well as impressive execution by management. Guidance was slightly better than expected and largely factors in the potential impact from the Sequester.” Aruba Networks closed on Thursday at $20.80.