UPDATE: Wunderlich Securities Raises PT to $7 on Brocade Communications

A report from Wunderlich Securities reiterates its Buy rating and raises its price target from $6 to $7 on Brocade Communications (NASDAQ: BRCD).

The report states, “In August, Brocade (BRCD) pre-announced a shortfall amounting to EPS of $0.02 that was a function of channel inventory reduction. 4Q11 results more than offset this with $0.05 of operating upside and an additional penny from lower share count from share repurchases. Due to upside sell-through of new Fibre Channel products and decreasing expenses, this was achieved despite further decline in channel inventory.”

BRCD closed yesterday at $4.48.