UBS Q3 Review on Brocade (BRCD): Good Quarter, But CEO Resign and Outlook Create 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: 11 | Down: 18 | New: 17
Rating Summary:
4 Buy, 22 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 17
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UBS maintains a 'Neutral' on Brocade (NASDAQ: BRCD) price target of $5.75 (from $5.25).
Analyst, Amitabh Passi, said, "We believe 3Q highlighted BRCD having some success with its ICX enterprise switch and its VDX data center switch, as well as an ongoing ramp of 16gps storage. However, given the upside in federal in 3Q (unclear how sustainable), and ongoing volatility q/q in the model (Ethernet products back to negative y/y growth in F4Q), we still lack clarity on the normalized growth/margin profile of the model."
FY12 EPS estimate raised from $0.60 to $0.63 and FY13 from $0.56 to $0.60. Passi also believes BRCD's announcement regarding the resignation of the CEO will create some mid-term uncertainty as to when/who will fill the roll(s).
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, Amitabh Passi, said, "We believe 3Q highlighted BRCD having some success with its ICX enterprise switch and its VDX data center switch, as well as an ongoing ramp of 16gps storage. However, given the upside in federal in 3Q (unclear how sustainable), and ongoing volatility q/q in the model (Ethernet products back to negative y/y growth in F4Q), we still lack clarity on the normalized growth/margin profile of the model."
FY12 EPS estimate raised from $0.60 to $0.63 and FY13 from $0.56 to $0.60. Passi also believes BRCD's announcement regarding the resignation of the CEO will create some mid-term uncertainty as to when/who will fill the roll(s).
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.
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