Piper Jaffray analyst Troy Jensen maintains an Overweight rating on shares of Aerohive Networks after the company negatively preannounced Q3 results and guided Q4 below consensus.

While disappointing, WiFi still represents an attractive growth opportunity for Aerohive, Jensen tells investors in a research note. Further, the analyst believes the current valuation makes the company "an attractive takeout candidate in an industry that has been consolidating."

Aerohive remains one of the last pure play WiFi companies and the stock pullback could open the door to a takeover, the analyst contends. He lowered his price target for the shares to $6.75 from $7.50 and keeps an Overweight rating on the name. Wunderlich and Barrington both downgraded their ratings this morning on Aerohive.

The stock is down 67c, or 12%, to $4.96 in early trading.