Brocade Communication Systems Inc Receives a New Rating from Top Analyst

By Austin Angelo

In a report released yesterday, Amit Daryanani from RBC Capital reiterated a Hold rating on Brocade Communication Systems Inc (NASDAQ: BRCD), with a price target of $12.75. The company’s shares closed yesterday at $12.62, close to its 52-week high of $12.70.

According to TipRanks.com, Daryanani is a top 25 analyst with an average return of 27.6% and a 87.6% success rate. Daryanani covers the Technology sector, focusing on stocks such as Hewlett Packard Enterprise, Benchmark Electronics, and Applied Materials.

Currently, the analyst consensus on Brocade Communication Systems Inc is Hold and the average price target is $12.75, representing a 1.0% upside.

In a report issued on May 25, Stifel Nicolaus also reiterated a Hold rating on the stock with a $12.75 price target.

Based on Brocade Communication Systems Inc’s latest earnings report for the quarter ending April 30, the company posted quarterly revenue of $553 million and GAAP net loss of $10.97 million. In comparison, last year the company earned revenue of $523 million and had a net profit of $43.09 million.

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Brocade Communications Systems, Inc. engages in the provision of innovative network solutions. It supplies networking hardware and software, including Storage Area Networking solutions and Internet Protocol networking solutions for businesses and organizations worldwide. It operates through the following segments: Storage Area Networking Products, Internet Protocol Networking Products, and Global Services. The Storage Area Networking Products segments include infrastructure products and solutions that assist customers in the development and delivery of storage and server consolidation, disaster recovery and data security, and in meeting compliance issues regarding data management. These products are used to build storage area networks and are generally used in conjunction with servers and storage subsystems, Storage Area Networking interconnection components such as host bus adapters and server and storage management software applications and tools. The Internet Protocol Networking segments products include Layer 2 and Layer 3 Ethernet switches and routers that are designed to connect users over private and public networks, including local area, metro, and within & across global data centers. Global Services segment include break and fix maintenance, installation, consulting, network management and software maintenance, and post-contract customer support revenue. Brocade Communications Systems was founded by Paul R. Bonderson, Jr., Kumar Malavalli and Seth D. Nieman on August 24, 1995 and is headquartered in San Jose, CA.