- Wunderlich has dropped Brocade (BRCD -4.2%) to Hold from Buy, following on the company's own downbeat guidance driven by weakness in storage area networking.
- The firm's analyst Matthew Robison trimmed his price target to $9, from $10.50, implying 10%-plus upside from today's lower price.
- The warning looks like economic slowdown and an organic recovery may be a few quarters off, Robison says.
- Some product cycles may be a bit further from contributing, he says, noting it could be late summer before Gen6 Fibre Channel got fully qualified by OEMs. “With OEM channel inventory down, we were encouraged to view the upcoming Gen6 Fibre Channel upgrade cycle as something to invest in rather than wait for. We have changed our mind," he writes.
- Ruckus Wireless (NYSE:RKUS), set to be acquired by Brocade, is down another 1.9% today following on yesterday's 7.3% decline. (Brocade closed yesterday down 11.5%.)
- Now read Cisco Rivals Brocade And Ruckus Are Merging. Who's Next? »