UPDATE: Wunderlich Securities Maintains Buy On Brocade Despite Industry Headwinds

In a report published Tuesday, Wunderlich Securities analyst Matthew Robison maintained a Buy rating on Brocade

and maintained a price target of $9.50. In the report, Wunderlich Securities says "Brocade (BRCD) reported another good earnings performance with guidance that was largely in line despite the challenging overseas economy and federal spending environment. Gross margin and operating expense progress continues and channel inventory remains low. We are maintaining our Buy recommendation and 12-month price target of $9.50. We expect Ethernet fabric and software defined networking and network virtualization to outgrow Fibre Channel (FC) to increasingly drive revenue, but we also expect continued FC upgrade demand to sustain strong cash flow." Brocade closed on Tuesday at $8.10.