BMO Capital Maintains a 'Market Perform' on Brocade (BRCD); Opportunities From Balance Sheet
Tweet
Share
E-mailGet Alerts BRCD Hot Sheet
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
Join SI Premium – FREE
BMO Capital maintains a 'Market Perform' on Brocade (NASDAQ: BRCD) price target of $6.50 (from $6.00).
Analyst, Keith Bachman, said, "Revenues of $555 million were better than our/Street estimate of $537million, owing to surprising material help of a 108% q/q increase and 40% y/y increase in Federal business...We think BRCD strong FCF and improving balance sheet are impressive. By the end of FY13, we project that BRCD will have a positive net cash per share of approx. $0.70/ share, compared to negative $0.10/share at present, even with $200 million in assumed FY13 buy-backs. With the potential sale of more than $300 million in real estate, in addition to our projected ~$400 million in FY13 FCF, our buy-back assumption/EPS estimates have upside potential...We are raising our FY13 estimate to $0.66 from $0.64, helped by a modest increase in revenues, 22 basis point increase in op. margins, and 3 million lower share count."
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 $5.63 yesterday.
Analyst, Keith Bachman, said, "Revenues of $555 million were better than our/Street estimate of $537million, owing to surprising material help of a 108% q/q increase and 40% y/y increase in Federal business...We think BRCD strong FCF and improving balance sheet are impressive. By the end of FY13, we project that BRCD will have a positive net cash per share of approx. $0.70/ share, compared to negative $0.10/share at present, even with $200 million in assumed FY13 buy-backs. With the potential sale of more than $300 million in real estate, in addition to our projected ~$400 million in FY13 FCF, our buy-back assumption/EPS estimates have upside potential...We are raising our FY13 estimate to $0.66 from $0.64, helped by a modest increase in revenues, 22 basis point increase in op. margins, and 3 million lower share count."
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 $5.63 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Fiserv (FISV) PT Lowered to $60 at Freedom Broker
- BMO Capital Reiterates Outperform Rating on Workday (WDAY)
- New Street Research Upgrades Micron Technology (MU) to Buy
Create E-mail Alert Related Categories
Analyst Comments, Analyst EPS View, Analyst PT ChangeRelated Entities
BMO CapitalSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
