BMO Capital Maintains a 'Market Perform' on Brocade (BRCD); Opportunities From Balance Sheet
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Price: $5.44 --0%
Rating Summary:
3 Buy, 17 Hold, 4 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 11 | Down: 16 | New: 13
Rating Summary:
3 Buy, 17 Hold, 4 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 11 | Down: 16 | New: 13
Trade BRCD Now!
BMO Capital maintains a 'Market Perform' on Brocade (NASDAQ: BRCD) price target of $6.50 (from $6.00).
Analyst, Keith Bachman, said, "Revenues of $555 million were better than our/Street estimate of $537million, owing to surprising material help of a 108% q/q increase and 40% y/y increase in Federal business...We think BRCD strong FCF and improving balance sheet are impressive. By the end of FY13, we project that BRCD will have a positive net cash per share of approx. $0.70/ share, compared to negative $0.10/share at present, even with $200 million in assumed FY13 buy-backs. With the potential sale of more than $300 million in real estate, in addition to our projected ~$400 million in FY13 FCF, our buy-back assumption/EPS estimates have upside potential...We are raising our FY13 estimate to $0.66 from $0.64, helped by a modest increase in revenues, 22 basis point increase in op. margins, and 3 million lower share count."
For an analyst ratings summary and ratings history on Brocade click here. For more ratings news on Brocade click here.
Shares of Brocade closed at $5.63 yesterday, with a 52 week range of $3.31-$6.17.
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Analyst, Keith Bachman, said, "Revenues of $555 million were better than our/Street estimate of $537million, owing to surprising material help of a 108% q/q increase and 40% y/y increase in Federal business...We think BRCD strong FCF and improving balance sheet are impressive. By the end of FY13, we project that BRCD will have a positive net cash per share of approx. $0.70/ share, compared to negative $0.10/share at present, even with $200 million in assumed FY13 buy-backs. With the potential sale of more than $300 million in real estate, in addition to our projected ~$400 million in FY13 FCF, our buy-back assumption/EPS estimates have upside potential...We are raising our FY13 estimate to $0.66 from $0.64, helped by a modest increase in revenues, 22 basis point increase in op. margins, and 3 million lower share count."
For an analyst ratings summary and ratings history on Brocade click here. For more ratings news on Brocade click here.
Shares of Brocade closed at $5.63 yesterday, with a 52 week range of $3.31-$6.17.
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