UPDATE: Summit Research Upgrades Brocade Communications Systems

In a note published earlier Monday morning, Summit Research analyst, Srini Nandury upgraded shares of Brocade Communications Systems, Inc.

from Sell to Hold and raised the price target from $8.50 to $10. Nandury's upgrade comes on the belief that Brocade's Fibre Channel (FC) business is better positioned than previously thought. Nandury noted after attending last week's analyst meeting, he now believes Brocade's FC business will actually grow in the low single-digits rather than decline. In addition to the FC business, Nandury said Brocade is looking to grow it Ethernet business as well, and he believes the company will be able to do this faster than the market. Nandury commented, "We are optimistic the growth could have long legs. Given management's stellar execution thus far, we are optimistic Brocade will deliver what it is promising."