Aruba Networks margin issues create a buying opportunity, says Northland Northland said Aruba made a sensible business decision to supply low end K-12 demand with the higher end AP225 at lower end prices in order to gain footprint. The analyst said its new AP205 access point is now launching and margins are already recovering. The firm recommends using weakness as a buying opportunity ahead of share gains and revenue ramp. Shares are Outperform rated with a $27 price target.
News For ARUN From The Last 14 Days
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Ruckus, Aruba advance after FCC approves new school WiFi program Shares of Ruckus Wireless (RKUS) and Aruba Networks (ARUN) are rising after the FCC announced that it would allocate new funds to subsidize the launch of WiFi networks in schools and libraries. Ruckus and Aruba provide products used for WiFi networks. WHAT'S NEW: The FCC said it would allocate $2B over the next two years to subsidize the launch of WiFi connections at schools and libraries. For the following three years, the agency said it would look to spend $1B annually on the project. The FCC said the funds would be "distributed fairly to all schools and libraries while recognizing the needs of the nationís rural and poorest school districts." PRICE ACTION: In mid-afternoon trading, Ruckus surged 5.5% to $11.62 and Aruba advanced 4.6% to $17.04.