Janney Starts (BRCD) (RVBD) (ARUN) (JNPR) (EMC) at Buy, (FFIV) (CSCO) (PLCM) (NTAP) at Neutral
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Janney's Bill Choi initiated coverage on numerous stocks in the Communications Equipment & IT Hardware sector Wednesday afternoon:
- Brocade (Nasdaq: BRCD) with a Buy rating and an $8 price target. "We are attracted to Brocade's possibilities as one of two vendors in the industry with substantial assets in both storage and Ethernet networking technologies." The firm recommends buying the stock ahead of: "16GB Fiber Channel product cycle, new VDX switch ramp, and productivity gains from recent sales hires."
- Riverbed (Nasdaq: RVBD) with a Buy rating and a $45 price target. Believes the company is "distancing itself from competition as the clear market leader in WAN Optimization. Also notes new customer adds remain "healthy."
- Aruba Networks (Nasdaq: ARUN) with a Buy rating and a $38 price target. Sees Aruba recording some of the strongest growth in the firm's coverage universe given "proliferation of mobile devices in the workplace..." Also likes the company's position in the Wireless LAN market.
- Juniper Networks (Nasdaq: JNPR) with a Buy rating and a $48 price target. Calls the recent 12 percent decline in the stock "an opportunity to build position in this secular growth story." Believes the company will be "a primary beneficiary of service provider spending on IP-based networks that will replace the legacy circuit-switched environment."
- EMC Corp. (NYSE: EMC) with a Buy rating and a $34 price target. Sees EMC leveraging its "best-in-class products" given solid relations with customers "and a go-to-market team of more than 12,000 sales professionals."
- F5 Networks (Nasdaq: FFIV) with a Neutral rating and a $110 price target. Despite several positive data points, Janney expects stock gains "moderating this year after the company upgraded most of the ~10% of its installed base that had older platforms."
- Cisco (Nasdaq: CSCO) with a Neutral rating and an $18 price target. Believes issues with "the product and market transitions in switching..." will take another year to clear up. As a result, the firm sees uncertainty related to Cisco's margin structure and growth profile.
- Polycom (Nasdaq: PLCM) with a Neutral rating and a $61 price target. "There are many things that are going well at Polycom, but strong stock outperformance and higher valuation multiple largely reflects many of these developments..."
- NetApp (Nasdaq: NTAP) with a Neutral rating and a $58 price target. Calls NetApp "well positioned" to catch increases in IT spending, however is neutral given "growing competition in midrange and limited upside..." to the firm's model.
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