JP Morgan Expecting Stability From Brocade

JP Morgan has published a research report on Brocade Communications Systems

while previewing the company's 4Q results, which will hopefully show the company stabilizing. In the report, JP Morgan writes "We expect shares of Overweight-rated Brocade to exhibit downside support. The company is set to report F4Q10 (Oct.) results on November 22. Investor expectations are not seeking a beat-and-raise. For a change, we are not lowering estimates ahead of the print. We expect the company to avoid any major execution set-back, which would be the first time in more than a year. Our checks indicate that the storage business should exhibit enough stability to restore investors' interest in the combined model turnaround. The anticipated Ethernet rebound remains a 1H C2011 event, and we believe that the company will project more confidence on this subject." JP Morgan maintains its Overweight rating and $7.50 price target. Brocade Communications closed yesterday at $5.76.