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Baird Downgrades Brocade (BRCD) to Underperform

July 14, 2016 6:21 AM EDT
Get Alerts BRCD Hot Sheet
Price: $12.73 --0%

Rating Summary:
    4 Buy, 22 Hold, 2 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 13 | Down: 11 | New: 11
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Baird downgraded Brocade (NASDAQ: BRCD) from Neutral to Underperform with a price target of $8.00 (from $10.00) amid all-flash array disruption.

Analyst Jayson Noland commented, "We view All-Flash Array (AFA) growth in the Enterprise as deflationary to Brocade’s core Fibre Channel market. We expect the company to maintain a high attach rate to AFA but we believe the port count opportunity will decline meaningfully over the next few years. We do believe the company has cost levers that can be used to buoy EPS but secular change of this magnitude will create multiple pressure on the stock, in our view."

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 $9.79 yesterday.



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Robert W Baird, Jayson Noland