Sycamore Jumped As Credit Suisse Upped Rating

Shares of Sycamore Networks (NASDAQ: SCMR) traded higher today after Credit Suisse analyst Paul Silverstein upped his rating on the company to “outperform” from “neutral.” The investment firm also lifted its price target to $31 from $22.

Silverstein said the upgrade is driven by the company’s new mobile broadband bandwidth optimization product. He also pointed out that at yesterday’s closing price, SCMR traded at 10% discount to the company’s estimated net cash position of $21.73 a share at the end of 2010. As a result, he believes that traders are getting the operations for less than nothing.

SCMR’s shares jumped 9.29% to close at $22.47.

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