Oppenheimer Reiterates on Aruba Networks as Strong Checks Bode Well

In a report published Wednesday, Oppenheimer analyst Ittai Kidron reiterated a Perform rating on Aruba Networks (NASDAQ: ARUN).

In the report, Oppenheimer noted, “We expect a strong quarter/outlook from Aruba and see a buying opportunity ahead of 1Q-FY14 results. Our checks are the strongest we've recorded and are particularly positive in the education vertical. This coincides with an unusually active quarter from Aruba announcing wins across its key verticals (education, medical, enterprise...), many of which are spurred by Aruba's early 802.11ac move. We expect 1Q-FY14 QoQ growth of +4%-7% and are raising our estimates ahead of guidance and the Street's +2.8% ($157.4M) target. Our 2Q-FY14 checks are equally bullish, suggesting mid-to-high single-digit QoQ growth vs. the Street's +5.4% target (off a smaller base). The addition of Ingram Micro as a channel partner and a continued 802.11ac push are incremental 4Q levers.”

Aruba Networks closed on Tuesday at $18.77.