UPDATE: JP Morgan Downgrades Aruba Networks on Competition from Cisco

In a report published on Friday, JP Morgan analyst Rod Hall downgraded Aruba Networks ARUN from Neutral to Underweight and lowered the price target from $17.50 to $13.00.

In the report, JP Morgan commented, "We are downgrading our rating on Aruba to Underweight from Neutral as the company appears to be losing market share in the face of much more aggressive competition from Cisco. We continue to believe that ARUN has a strong technology solution, but we are concerned that revenue growth could slip materially in the next few quarters as Cisco price aggression continues. We will be watching for signs of stabilization as we believe that Aruba's superior technology portfolio should eventually win out. However, until the battle calms we believe investors should avoid the stock. Our price target also comes down to $13 from $17.5 previously."

Aruba Networks closed on Thursday at $17.61