Downgrade of the Day: Ruckus Wireless Inc

Ruckus Wireless Inc (NYSE:RKUS) received a stock rating downgrade from Goldman on Apr-04-16. In a note to investors, the firm issued a Neutral rating. The analysts previously had a Buy rating on the stock.

The 52-week price range is $7.25-$13.50 and the company has a market capitalization of $1.17 billion. Analysts covering the shares maintain a consensus Strong Buy rating, according to Zacks Investment Research. Zero analyst has rated the stock with a sell rating, 6 has assigned a hold rating, 2 says it’s a buy, and 4 have assigned a strong buy rating to the company.

Ruckus Wireless Inc (RKUS) on February 18, 2016 announced its intention to address the challenge of in-building cellular coverage and capacity through the introduction of OpenG™ technology. OpenG technology combines coordinated shared spectrum, such as 3.5 GHz in the U.S., with neutral host-capable small cells to enable cost-effective, ubiquitous in-building cellular coverage. Ruckus plans to drive the adoption of OpenG technology—which addresses a global market with an annual TAM of over $2 billion*—by leveraging its extensive enterprise channels, service provider, public venue and enterprise customer base, and its portfolio of differentiated technologies. Ruckus plans to unveil specific products and offerings throughout 2016. As part of this announcement, Ruckus is demonstrating OpenG technology in collaboration with Qualcomm Technologies, Inc. (a subsidiary of Qualcomm Incorporated) during Mobile World Congress (MWC) 2016 in Barcelona. Ruckus will also demonstrate its Wi-Fi calling solution during the show which, in combination with OpenG technology, showcases the future of the all-wireless enterprise.

The industry is in the midst of a dramatic shift as cellular and Wi-Fi technologies converge through a number of technical and standards developments, including license assisted access (LAA), LTE Wi-Fi link aggregation (LWA), Hotspot 2.0 and Wi-Fi calling. This is driven by spectrum pressures, 5 GHz support on devices becoming ubiquitous and agnostic over-the-top (OTT) applications enabled by a common IP foundation. In addition, new spectrum sharing options outside of the traditional licensed and unlicensed models are emerging, exemplified by the new coordinated shared spectrum 3.5 GHz model adopted by the Federal Communications Commission (FCC) in the U.S. Ultimately, the biggest driver is the need to ensure consistent coverage and quality-of-experience for mobile users regardless of the underlying wireless technology.

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