UPDATE: Piper Jaffray Initiates Silver Spring Networks with Neutral on CY14 Operating Income Assumption

In a report published Monday, Piper Jaffray analyst Troy D. Jensen initiated coverage on Silver Spring Networks

with a Neutral rating and $19.00 price target. In the report, Jensen noted, “We are initiating coverage of Silver Spring Networks with a Neutral and $19 PT based on 19x our CY14 operating income assumption plus cash. Silver Spring Networks is the market leader within the Smart Grid Technology space, which is estimated to grow roughly 23% over the next three years. While we believe the company will likely capture a significant amount of this market growth, customer concentration, utility capex trends and valuation keeps us on the sidelines. We believe that lack of near term catalysts rules out the possibility of a significant multiple expansion, and see limited upside to current trading levels. Despite our Neutral rating, we believe international growth and additional software and service contributions represents a unique long-term opportunity for the company, but a wait and see approach appears more appropriate.” Silver Spring Networks closed on Friday at $19.21.