Wedbush Assumes Coverage on Brocade (BRCD) at Neutral; Appropriately Valued Turnaround Story but N-T Macro Headwinds & Competition May Limit Growth Prospects
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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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Wedbush assumes coverage on Brocade (NASDAQ: BRCD) with a Neutral (from Outperform). PT $6.00 (from $7.50).
Wedbush analyst says, "While the company recently printed a solid FQ411, which was encouraging, we would like to see sustained execution and margin enhancement. In our view, the pace of growth in the near term is likely to remain sluggish as global macro headwinds in Europe and a weak forecast for US federal spending persist. Furthermore, we think the competitive landscape in the Ethernet market is increasing, with discounting across the market and a renewed effort to maintain share by Cisco (Nasdaq: CSCO). These near-to medium-term risks threaten both top-line growth and potential margin expansion. Longer term, however, we believe there is a solid secular growth story driven by higher spending by the enterprise and carrier markets to meet the networking demands of data rich applications and storage needs, continued market share gains in the enterprise market, cloud opportunities, and the high priority customers place on securing corporate and service provider networks."
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 $5.23 yesterday.
Wedbush analyst says, "While the company recently printed a solid FQ411, which was encouraging, we would like to see sustained execution and margin enhancement. In our view, the pace of growth in the near term is likely to remain sluggish as global macro headwinds in Europe and a weak forecast for US federal spending persist. Furthermore, we think the competitive landscape in the Ethernet market is increasing, with discounting across the market and a renewed effort to maintain share by Cisco (Nasdaq: CSCO). These near-to medium-term risks threaten both top-line growth and potential margin expansion. Longer term, however, we believe there is a solid secular growth story driven by higher spending by the enterprise and carrier markets to meet the networking demands of data rich applications and storage needs, continued market share gains in the enterprise market, cloud opportunities, and the high priority customers place on securing corporate and service provider networks."
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 $5.23 yesterday.
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