Needham & Company Maintains a 'Buy' on Brocade (BRCD); Raising Estimates on Stronger SAN Outlook
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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 $5.50 to $6.50.
Analyst, Glenn Hanus, said, "BRCD reported F1Q12 ahead of our and Street estimates driven by continued SAN strength. Ethernet missed on weak Federal and Enterprise on transition to channel/indirect sales model, pause in front of new Campus LAN products launch, and discounting on large deals, partially offset by record Service Provider. EPS upside on higher rev., GM, disciplined Opex, and ~$0.03 tax benefit. Although BRCD is facing similar macro headwinds already widely discussed, our BRCD thesis remains basically intact - Execution in core (slow growth) SAN business continues to be solid, as Ethernet shows some promising signs, albeit somewhat erratic q/q."
Needham raises FY12 EPS estimate from $0.51 to $0.59 and FY13 from $0.56 to $0.61.
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 $5.50 yesterday.
Analyst, Glenn Hanus, said, "BRCD reported F1Q12 ahead of our and Street estimates driven by continued SAN strength. Ethernet missed on weak Federal and Enterprise on transition to channel/indirect sales model, pause in front of new Campus LAN products launch, and discounting on large deals, partially offset by record Service Provider. EPS upside on higher rev., GM, disciplined Opex, and ~$0.03 tax benefit. Although BRCD is facing similar macro headwinds already widely discussed, our BRCD thesis remains basically intact - Execution in core (slow growth) SAN business continues to be solid, as Ethernet shows some promising signs, albeit somewhat erratic q/q."
Needham raises FY12 EPS estimate from $0.51 to $0.59 and FY13 from $0.56 to $0.61.
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 $5.50 yesterday.
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