The firm set a price target of $27 for the company's stock. Northland Capital analysts say Aruba's ClearPass, ClientMatch, and Intsant products should help drive share gains and a growth rate.
"Aruba's gross margins have risen 400bps since 2009 despite competitive pricing, including heavy discounts / bundling from Cisco," the analysts wrote. "Aruba's new software modules ClearPass and ClientMatch should sustain margins - ClearPass is growing near 100%. Stable gross margins and rising revenue should drive operating margins to the high end of its 19-21% range. Aruba's stock compensation remains high, but improving."
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TheStreet Ratings team rates ARUBA NETWORKS INC as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:
"We rate ARUBA NETWORKS INC (ARUN) a SELL. This is driven by a number of negative factors, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share."