JMP Securities reiterated their outperform rating on shares of Aruba Networks (NASDAQ:ARUN) in a research note released on Tuesday morning, American Banking & Market News reports. They currently have a $22.00 target price on the stock.
“We reiterate our Market Outperform rating and $22 price target on Aruba Networks as our channel checks suggest sales momentum was strong in F1Q14, and we are raising our F1Q14 estimate to EPS of $0.14 on revenues of $158.6M from the same earnings on revenues of $157.6M. The company reports results on Thursday, November 21 and our prior estimate was in line with consensus. We also believe the company’s F2Q14 guidance will be at least in line with the consensus estimate for EPS of $0.16 on revenues of $166M, and we are bumping up our estimate to match consensus. In addition, we feel that management will reaffirm its target for generating 20% growth in 2H14 and 20% operating margins in F4Q14. Given that ARUN traded off 10% yesterday on cautious comments from other analysts, we feel the pull-back represents a buying opportunity. We feel that shares are attractive at 19x our CY14 EPS as the company is re-accelerating its growth back to 20%, and we believe it will trade at a premium to its growth. Our channel checks suggest demand was healthy during the quarter, especially for the company’s new access management and mid-range solutions – the ClearPass and Instant product lines.,” JMP Securities’ analyst commented.
Shares of Aruba Networks (NASDAQ:ARUN) traded down 0.09% on Tuesday, hitting $16.865. The stock had a trading volume of 767,637 shares. Aruba Networks has a 1-year low of $12.38 and a 1-year high of $26.78. The stock’s 50-day moving average is $18.46 and its 200-day moving average is $17.08. The company’s market cap is $1.945 billion.
Aruba Networks (NASDAQ:ARUN) last issued its quarterly earnings data on Thursday, August 22nd. The company reported $0.12 earnings per share for the quarter, beating the analysts’ consensus estimate of $0.11 by $0.01. The company had revenue of $153.10 million for the quarter, compared to the consensus estimate of $149.33 million. During the same quarter in the previous year, the company posted $0.18 earnings per share. The company’s revenue for the quarter was up 10.0% on a year-over-year basis. Analysts expect that Aruba Networks will post $0.67 EPS for the current fiscal year.
Several other analysts have also recently commented on the stock. Analysts at Wells Fargo & Co. reiterated a market perform rating on shares of Aruba Networks in a research note to investors on Monday. They now have a $19.00 price target on the stock, up previously from $17.00. They noted that the move was a valuation call. Separately, analysts at Zacks upgraded shares of Aruba Networks from an underperform rating to a neutral rating in a research note to investors on Wednesday, November 6th. They now have a $19.10 price target on the stock. Finally, analysts at RBC Capital raised their price target on shares of Aruba Networks from $18.00 to $22.00 in a research note to investors on Wednesday, October 30th. They now have an outperform rating on the stock. One research analyst has rated the stock with a sell rating, seventeen have assigned a hold rating and eleven have issued a buy rating to the company. The company currently has a consensus rating of Hold and an average price target of $25.60.
Aruba Networks, Inc, is a provider of next-generation network access solutions for mobile enterprise networks.
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