Boston, MA 09/26/2014 (wallstreetpr) – Supplier of networking equipment, Brocade Communications Systems, Inc. (NASDAQ:BRCD) shares price target has been revised upwards by two brokerages, Wunderlich Securities and RBC Capital Markets on Thursday. Their move comes on the heels of Citigroup (NYSE:C) slashing its price objective on the shares of Brocade Communications.
Price Tag Lifted
Analyst Mathew Robison of Wunderlich has increased the price target on the shares of Brocade Communications Systems, Inc. (NASDAQ:BRCD) to $12.00 from $11.00 a share based on incremental prospects, Benzinga reported.
The analyst, who attended Brocade Communications Systems, Inc. (NASDAQ:BRCD)’s annual analyst meeting, said that the company was concentrating on opportunities available for the VDX Ethernet fabric range in Internet Protocol storage. It meant that Brocade would be in a position to bring out Fibre Channel-based products for its network automation and management functions, which would allow them to grow in the space that is currently experienced by Arista Networks Inc (NYSE:ANET).
The brokerage believes that it would also offer a way to installed base upgrades as and when the supply chain gets Ethernet extended beyond the Fibre Channel performance. Therefore, it introduced fiscal year 2016 estimated expectations for acceleration thus increasing its one-year price objective. Analyst also maintained his Buy rating on the shares of Brocade Communications Systems, Inc. (NASDAQ:BRCD).
Other Brokerages
RBC Capital Markets too has lifted its price target on the shares of Brocade Communications to $13.00 from $12.00 on Thursday. However, it maintained its rating of Outperform on the shares of Brocade Communications Systems, Inc. (NASDAQ:BRCD).
The upwardly revised price target fixed by the two brokerages indicate that the stock has an upside potential of 12% to 21.3% based on the closing price of $10.72 on Wednesday.
If these were on the positive side, a few days before, i.e. on Monday, Citigroup has maintained its rating of Sell on the shares of Brocade Communications Systems, Inc. (NASDAQ:BRCD). However, it had slashed its price target to $9.00 a share. This meant that there is a downside risk of about 16% based on Wednesday’s closing price.
