Merriman Capital Has Buy On Brocade Communications

Merriman Capital is out with a research report on Brocade Communications, Inc. (NASDAQ: BRCD) and it has a Buy rating on shares.

In a note to clients, Merriman Capital writes, "Is Brocade broken? We do not think so - we believe the negative pre-announcement is more macro related than a structural issue with Brocade. Brocade's revenues are lumpy with some high customer concentrations. We believe the company's dominant position in its core Fibre Channel business and emerging position in Ethernet should be attractive to investors at these valuations. Brocade is still an attractive acquisition target for companies who want to enter the datacenter market. We are maintaining our Buy rating and would encourage investors who can digest a little bit of volatility to buy the stock."

Shares of BRCD lost $1.37 on Friday to close at $3.52.