UPDATE: J.P. Morgan Maintains Underweight On Brocade On Expected Divestitures

In a report published Monday, J.P. Morgan maintained an Underweight rating on Brocade

but raised the price target from $7.00 to $8.00. In the report, J.P. Morgan said "We are adjusting our Brocade model for market- and company-specific factors. Our F2013/F2014 revenue estimates are decreasing due to broader market weakness and Brocade's planned divestitures of certain assets. We expect the divestitures to help prop up operating margin and cash flow metrics, resulting in our price target increasing to $8.00, versus $7.00 previously. We could become more constructive on the stock if the revenue model starts to return to growth on a YoY basis. In the interim, we maintain our Underweight rating." Brocade closed on Friday at $8.09.