BMO Capital Raises Price Target on Brocade Communications (BRCD) Following Ruckus Acquisition Close

BMO Capital reiterated a Market Perform rating on Brocade Communications (NASDAQ: BRCD), and raised the price target to $9.00 (from $8.00), following the company's announced closing of Ruckus acquisition.

Analyst Tim Long commented, "In FQ3, the deal is expected to add to $50-$60 million in revenues (based on two months), for a combined revenue outlook of $560-$590 million. Combined op margins are expected to range from 17%-19%, and pro-forma EPS will be $0.14-$0.17, which implies $0.04-$0.05 dilution. In FQ4, the deal will beneutral to EPS, and in FY17, the deal will be accretive by $0.02-$0.03 per quarter. Based on the guidance, our FY16 EPS moves to $0.90 from $0.95 andour FY17 EPS is increased to $1.03 from $0.92."

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 $8.58 yesterday.

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