Goldman Sachs Raises Brocade EPS Estimates On Ruckus Acquisition
Brocade Communications Systems, Inc. (NASDAQ: BRCD) announced on May 27 that it had completed the acquisition of Ruckus Wireless Inc (NYSE: RKUS).
Analysts at Goldman Sachs maintain a Neutral rating on the company, while raising the price target from $9 to $10.
Impact Of Ruckus
The analysts expect EPS dilution of $0.06 during FY16, “as the company noted that it would be making incremental opex investments to be able to sell the Ruckus portfolio into its customer base.”
However, the acquisition is estimated to be EPS accretive in FY17 by $0.14, as compared to the company’s target of $0.08–$0.12.
This accretion is likely to be driven by modes opex synergies, as well as the completion of share buyback worth $800 million in FY16.
The non-GAAP EPS estimates for FY16, FY17 and FY18 have been revised from $0.98 to $0.92, $0.99 to $1.13 and from $1.02 to $1.23, respectively.
Latest Ratings for BRCD
Date | Firm | Action | From | To |
---|---|---|---|---|
Nov 2016 | Wunderlich | Downgrades | Buy | Hold |
Nov 2016 | DA Davidson | Downgrades | Buy | Neutral |
Nov 2016 | RBC Capital | Downgrades | Outperform | Sector Perform |
View More Analyst Ratings for BRCD
View the Latest Analyst Ratings
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