UPDATE: Goldman Sachs Upgrades Silver Spring Networks to Buy, Reiterates $26 PT on Opportunity from Sharp Pullback

In a report published Wednesday, Goldman Sachs analyst Simona Jankowski upgraded the rating on Silver Spring Networks SSNI from Neutral to Buy, and reiterated the $26.00 price target. In the report, Goldman Sachs noted, “We upgrade Silver Spring Networks to Buy from Neutral. SSNI shares have been cut in half since the $33 peak in early August (while NASDAQ is up 3%), following the loss of a UK deal, a CFO change, and lock-up expiration, and now trade below the March IPO price of $17. At the same time, our confidence in our above-consensus estimates into 2014 has grown due to several large deals signed since the IPO, including Singapore Power, Masers Energy (Malaysia), and CPS, as well as the pull-in of ComEd to late 2013 from 2015. We see valuation as attractive at a CY14E EV/S of 1.5X and CY15E P/E of 10X relative to our CY12-15 revenue CAGR estimate of 22%.” Silver Spring Networks closed on Tuesday at $16.24.