The stock price of Aruba Networks, Inc. (NASDAQ:ARUN) climbed more than 4% to $21.17 per share at the time of this writing around 2:38 in the afternoon in New York today.
The increase was driven by the bullish ratings for the stock by several Wall Street analysts, prompted by the strong fourth-quarter financial results.
Analysts’ stock ratings
Analysts at UBS upgraded their rating for the shares of Aruba Networks, Inc. (NASDAQ:ARUN) to Buy from Neutral and raised their price target for the stock from $21 to $25 per share.
Analysts at JP Morgan Chase & Co. (NYSE:JPM) also upgraded their rating for the stock from Underweight to Neutral and increased their price target from $15 to $21 per share.
On the other hand, analysts at Stephens upgraded their rating for Aruba Networks, Inc. (NYSE:ARUN) to Overweight while Mizuho analysts raised their price target for the stock $21 per share.
Meanwhile, Imperial Capital had an Outperform rating for the shares of Aruba Networks, Inc. (NYSE:ARUN) and increased its price target from $23 to $26 per share.
Aruba Networks’ financial results
Yesterday, Aruba Networks, Inc. (NYSE:ARUN) reported a non-GAAP earnings of $27.6 million or $0.24 per diluted share for the fourth-quarter compared with its $15.8 million or $0.13 in earnings per diluted share in the same period a year ago.
The company’s revenue for the quarter increased 33% to $202.9 million from $153.1 million in the year-ago quarter.
Wall Street analysts expected Aruba Networks, Inc. (NYSE:ARUN) to deliver $0.23 in earnings per share on $194.83 million in revenue.
Aruba Networks’ president and CEO Dominic Orr said, “We achieved significant market share gains, supported by the continued ramp up of our full line of 802.11ac access points as well as strong Instant and Clear Pass sales. The focused execution of our product roadmap underscores the merits of our first-to-market strategy and further strengthens our leadership position.”
In addition, Orr emphasized that the investments made by Aruba Networks, Inc. (NYSE:ARUN) to boost its sales and channel capacity are driving additional operating leverage and providing a strong platform for the future growth of the company.