Needham & Company Maintains a 'Buy' on Brocade (BRCD); Strong F4Q11; Upbeat Report/Outlook Tempered by Macro Uncertainty
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Price: $12.73 --0%
Rating Summary:
4 Buy, 22 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
4 Buy, 22 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Needham & Company maintains a 'Buy' on Brocade (NASDAQ: BRCD) price target raised from $5.00 to $5.50.
Needham analyst says, "BRCD reported F4Q11 ahead of our and street estimates driven by SAN beat on good end user demand, despite OEM inventory reduction. Ethernet inline driven by good q/q growth in Federal and Enterprise, but spending environment remains challenging. EPS upside on higher rev., GM, and disciplined Opex. Although BRCD is facing similar macro headwinds already widely discussed, our BRCD thesis remains basically intact - Execution in core (slow growth) SAN business continues solid, as Ethernet appears fairly promising, demonstrating some momentum and gaining share."
"F1Q guide: NG EPS of $0.12-0.14 on $530-550M vs. street $0.11 on $536M and our $0.13 on $555M. F1Q rev. guide of flat to down q/q vs. typical q/q
growth due to macro uncertainty with Europe and super committee, sale of SBS consulting business (~$3MM less rev.), and seasonally weak Federal,
offset by typical q/q growth in SAN. GM 62-63% vs. our 62.3%, OM 17-19%, and FCF of $27-30M."
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 $4.48 yesterday.
Needham analyst says, "BRCD reported F4Q11 ahead of our and street estimates driven by SAN beat on good end user demand, despite OEM inventory reduction. Ethernet inline driven by good q/q growth in Federal and Enterprise, but spending environment remains challenging. EPS upside on higher rev., GM, and disciplined Opex. Although BRCD is facing similar macro headwinds already widely discussed, our BRCD thesis remains basically intact - Execution in core (slow growth) SAN business continues solid, as Ethernet appears fairly promising, demonstrating some momentum and gaining share."
"F1Q guide: NG EPS of $0.12-0.14 on $530-550M vs. street $0.11 on $536M and our $0.13 on $555M. F1Q rev. guide of flat to down q/q vs. typical q/q
growth due to macro uncertainty with Europe and super committee, sale of SBS consulting business (~$3MM less rev.), and seasonally weak Federal,
offset by typical q/q growth in SAN. GM 62-63% vs. our 62.3%, OM 17-19%, and FCF of $27-30M."
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 $4.48 yesterday.
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