Seeking Alpha

An upgrade to Buy from ISI's Stephan Patel gives a lift to Brocade (BRCD +3.4%). Though Patel...

An upgrade to Buy from ISI's Stephan Patel gives a lift to Brocade (BRCD +3.4%). Though Patel isn't crazy about Brocade's "fundamental growth prospects over the next several years" (he's worried about a lack of Fibre Channel hardware growth and an uphill battle against Cisco in Ethernet switching), he still sees "several potential near-term catalysts." These include a $0.03-$0.05 EPS boost from a $100M cost-cutting program, and "a more shareholder-friendly capital allocation program" that could include a ~$0.03/share quarterly dividend. Activist firm Elliott Management, known for pushing for such moves, has dumped its Brocade stake.
Comments (0)
Be the first to comment
DJIA (DIA) S&P 500 (SPY)
ETF Hub
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs