Wunderlich Securities Sees Stronger-than-Expected F3Q14 Results for Brocade Communications Systems

In a report published Friday, Wunderlich Securities analyst Matthew S. Robison reiterated a Buy rating and $11.00 price target on

. In the report, Wunderlich Securities noted, “Brocade (BRCD) reported a stronger than expected F3Q14 with upside Fibre Channel sales and good contribution from higher margin Ethernet switches. The company is also making progress with public network operators looking for network function virtualization (NFV). However, this is mostly market seeding as revenue from NFV will not materialize significantly until the products are utilized in large scale production networks, which may not happen for more than a year from now. Caution due to concerns over volatility in Russia and emerging markets, as well as continued disruption at IBM (IBM – NR), diminishes management expectations for F4Q14 seasonality, but sequential guidance is relative to an unusually strong F3Q14. Our Buy rating and $11 price target are unchanged.” Brocade Communications Systems closed on Thursday at $9.41.