Aruba Networks Shares Climb After Wedbush Upgrade

NEW YORK (AP) — Aruba Networks Inc. shares advanced Wednesday after a Wedbush Morgan analyst called the company's sales projection "conservative" and pointed to gains against rival network equipment makers.

Wedbush analyst Rohit Chopra upgraded the stock to "Outperform" from "Neutral," raising his price target for shares to $11 from $9.

Chopra pointed out that Aruba's revenue climbed by about $7.5 million in the most recent quarter, compared with the previous quarter. Now, the Sunnyvale, Calif.-based company's official projection calls for an increase of only $1 million to $3 million — or sales of $54 million to $56 million.

The company's fiscal fourth-quarter sales, announced in late August, came to $53.3 million. Analysts had expected $49 million, according to Thomson Reuters.

"In our view, management appears to be confident based on our recent conversations, and estimates are likely to be easily achieved," Chopra said.

The company is also making gains at the expense of rival Cisco Systems Inc., he added. "When competing head to head, Cisco still cannot match (Aruba) on price and functionality, according to our sources," he said.

Aruba's stock rose 43 cents, or 4.7 percent, to $9.51 in afternoon trading. The stock has ranged from $1.85 to $9.96 over the past year.