Morgan Stanley Equal-weight On Brocade Communications Systems

Morgan Stanley is out with a research report on Brocade Communications Systems

and it has an Equal-Weight rating. In a note to clients, Morgan Stanley writes, "Technology leadership in Ethernet Fabrics and FC storage, a refined go-to-market strategy that leverages the channel, and more achievable FY12 growth and margin targets were key highlights from Brocade's Analyst Day. However, despite a more favorable set-up, Brocade remains a show-me story that needs to prove it can execute over a multi-quarter period, therefore we remain Equal-weight. We apply a trough 8x P/E multiple to our CY12 EPS estimate of $0.48 to arrive at our base case of $3.80." Shares closed at $4.03 yesterday.