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Ruckus Wireless ( RKUS ) could get a boost from increased spending on public Wi-Fi networks by cable TV companies as well as its push into a new market — LTE wireless data services that use high-frequency 3.5 GHz spectrum, say analysts. Ruckus, a maker of Wi-Fi networking gear, competes with Cisco Systems ( CSCO ), Hewlett Packard Enterprise ( HPE ), Aerohive Networks ( HIVE ) and others. Ruckus stock was up a fraction in midday trading on the stock market today , near 9.75, but it’s down 9% this year after falling nearly 11% last year, amid a slowdown in education spending on wireless networks. Ruckus has a IBD Composite Rating of 70, where 99 is highest. Ruckus stock touched an all-time low of 7.25 on Feb. 10. On Friday, BTIG analyst Walt Piecyk initiated coverage on Ruckus with a buy rating. “We expect Ruckus to generate 16% revenue growth in 2016, an acceleration from last year’s 14% growth rate,” wrote Piecyk. “We expect 2017 revenue growth of 16% but note that if a cable operator were to initiate a new investment program, Ruckus would have the opportunity to accelerate the top line.” Ruckus sells Wi-Fi gear to the enterprise market — big corporate, government, education and health system customers. One concern among analysts is its exposure to China’s telecom market. In late 2017, Ruckus could get a lift from a new product cycle, says Jason Ader, an analyst at William Blair. Ruckus is targeting in-building wireless networks that use 3.5 GHz spectrum, using a technology called OpenG. Ruckus is working on OpenG with Qualcomm ( QCOM ), Nokia ( NOK ) and Alphabet ’s ( GOOGL ) Google. “Ruckus management is confident in driving adoption of OpenG over time and expects revenue impact in the second half of 2017,” wrote Ader in a research report. “We view the in-building cellular opportunity as an excellent strategic fit with Ruckus’ existing business and a material growth catalyst longer term, especially as the Wi-Fi market matures.” Scalper1 News
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