Goldman Sachs Raises PT to $4 on Brocade Communications

In an equity research note, Goldman Sachs reiterates its Sell rating on Brocade Communications Systems, Inc. (NASDAQ: BRCD) and raised its target price to $4 from $3.50 as the company's 4QFY11 earnings beat expectations.

According to Goldman Sachs, “Brocade reported a top- and bottom-line beat for 4QFY11 (October), with revenue/non-GAAP EPS at $550.5mn/$0.16 above the Street at $527.4 mn/$0.10 and GS at $522.9 mn/$0.10. For 1QFY12, management guided revenue of $530-$550 mn, in line with prior GS/Street at $535.6 mn/$535.3 mn, and EPS of $0.12-$0.14, vs. GS/Street at $0.11/$0.11.”

BRCD closed down 3.45 percent on Monday, at $4.48 per share.