NEW YORK (AP) -- A recent drop in the price of Ruckus Wireless shares provides a buying opportunity, a Goldman Sachs analyst said Friday as she raised the company's rating.
THE SPARK: Analyst Simona Jankowski boosted Ruckus Wireless Inc. to "Buy" from "Neutral." The Sunnyvale, Calif., company, which went public in November, makes equipment for and builds big Wi-Fi networks. Its biggest customers are phone companies that want Wi-Fi hotspots to offload traffic from their cellular networks.
THE BACKGROUND: Last week Ruckus stock dropped after its first-quarter results missed Wall Street's expectations and it offered a second-quarter revenue forecast below analysts' estimates.
THE ANALYSIS: Jankowski said in a client note that Ruckus' stock is off 11 percent from its November initial public offering price of $15. The shares are also down 41 percent for the year to date.
The analyst said she still feels that the company's long-term secular growth story in Wi-Fi is intact and suggested investors take advantage of the pullback in share price.
Jankowski kept a $19 price target.
Ruckus declined to comment on the analyst's report.
SHARE ACTION: Up 37 cents, or 2.8 percent, to $13.67 in afternoon trading. The stock has traded between $11.82 and $26.50 since going public.