Goldman Sachs Raises PT From $6.25 To $6.50 On Brocade Communications Systems

In a recent report, Goldman Sachs has raised the price target from $6.25 to $6.50 and has reiterated a Neutral rating on Brocade Communications Systems (NASDAQ: BRCD) after F2Q results were inline with estimates.

In the report, Goldman Sachs said, "We believe there is potential for near-term upside to estimates from expanding gross margins, mainly from the IP segment, as well as expanding operating leverage off of completed sales investments and normalized R&D spend levels, but this is reflected by the Brocade's shares year-to-date return of 18% versus the NASDAQ's 7%."

BRCD closed yesterday at $6.26.