GARP Research Reiterates a 'Buy' on Brocade (BRCD); Strong Demand for 16G Products; Ethernet Posts 11% y/y Growth
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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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GARP Research reiterates a 'Buy' on Brocade (NASDAQ: BRCD).
GARP analyst, Seth Dadds, said, "Brocade’s core SAN storage business (~70% market share) has exceeded our expectations, but its entry into Ethernet networking via the 2008 Foundry acquisition hit a wall in late 2009. After increasing its annual sales and marketing expense by about $100 million since January 2010, coupled with exciting new products, we believe Brocade is positioned to grow its networking share from ~3 % today to 4.5% by FY2014. Meanwhile, we think the mature SAN storage business has more legs than investors give it credit for, and we believe this business can grow at 3% annually over the next three years. Brocade’s balance sheet has significantly improved, with net debt falling from $1.1 billion in January 2009 to $382 million in October 2011. Shares trade at 11x our FY12 EPS estimate and just over 8x our FY14 estimate."
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.
GARP analyst, Seth Dadds, said, "Brocade’s core SAN storage business (~70% market share) has exceeded our expectations, but its entry into Ethernet networking via the 2008 Foundry acquisition hit a wall in late 2009. After increasing its annual sales and marketing expense by about $100 million since January 2010, coupled with exciting new products, we believe Brocade is positioned to grow its networking share from ~3 % today to 4.5% by FY2014. Meanwhile, we think the mature SAN storage business has more legs than investors give it credit for, and we believe this business can grow at 3% annually over the next three years. Brocade’s balance sheet has significantly improved, with net debt falling from $1.1 billion in January 2009 to $382 million in October 2011. Shares trade at 11x our FY12 EPS estimate and just over 8x our FY14 estimate."
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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