Canaccord Adams Initiates Coverage on Brocade Communications (BRCD) with a Buy
BRCD Hot Sheet
Rating Summary:4 Buy, 14 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 16 | Down: 7 | New: 23
Canaccord Adams initiates coverage on Brocade Communications (Nasdaq: BRCD) with a Buy. Price target $10
Canaccord analyst says, "When comparing Brocade to its now closest competitor Juniper (Nasdaq: JNPR), we point out the following: 1) both largely are duopolistic in their core business, with comparable margin profiles; 2) routing offers more upside than FC switching (vs. today), but is far more volatile (carrier capex vs. storage spending); and 3) at worst, Brocade and Juniper are evenly matched in their Ethernet switch market positioning. Juniper trades at approximately 26x 2010E (depressed EPS) while Brocade trades at 11x (depressed EPS). Our 15x C2010E Brocade multiple represents nearly a 40% discount to Juniper’s multi-year median, leaving a generous amount of upside potential, in our view."
To see more analyst ratings on BRCD Click Here.
Brocade Communications Systems, Inc. (Brocade) is a supplier of data center networking solutions that help enterprises connect and manage their information.
Canaccord analyst says, "When comparing Brocade to its now closest competitor Juniper (Nasdaq: JNPR), we point out the following: 1) both largely are duopolistic in their core business, with comparable margin profiles; 2) routing offers more upside than FC switching (vs. today), but is far more volatile (carrier capex vs. storage spending); and 3) at worst, Brocade and Juniper are evenly matched in their Ethernet switch market positioning. Juniper trades at approximately 26x 2010E (depressed EPS) while Brocade trades at 11x (depressed EPS). Our 15x C2010E Brocade multiple represents nearly a 40% discount to Juniper’s multi-year median, leaving a generous amount of upside potential, in our view."
To see more analyst ratings on BRCD Click Here.
Brocade Communications Systems, Inc. (Brocade) is a supplier of data center networking solutions that help enterprises connect and manage their information.
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