Brocade Communications Systems Inc  (BRCD) Trade Now »     Rate BRCD  -  Discuss BRCD  -  Add to Watch List        

BRCD is undervalued, looking only at valuation relative to its industry.

* BRCD has a Projected P/E of 8.89
* BRCD's Industry (Data Storage Devices) has an average Projected P/E of 16.31
* Implies a Projected Stock Price of $10.60

* BRCD has a projected earnings growth rate of 11.12%
* BRCD has a PEG of 0.80
* BRCD's Industry (Data Storage Devices) has an average Projected PEG of 1.32
* Implies a Projected Stock Price of $9.54

Source of the analysis and calculations:

http://www.freestockvalueranker.com/?method=peg_pe&symbol...

BRCD has solid fundamentals and very strong intermediate term projected growth.  As an infrastructure provider, they have been oversold on recession worries.  Manageable downside risk, high (est. 50% or better) upside opportunity in 1 year.

Also a Cramer favorite at end of 2007 - not sure of his current view.

That story in the WSJ a couple of weeks ago about Brocade (BRCD) shopping for a buyer so far has not played out, although it has given a nice boost to the company’s shares. But there’s a growing camp on the Street that isn’t convinced a deal will happen any time soon.

Jim Yin, an equity analyst with Standard & Poor’s, today cut his rating to Hold from Buy, noting that the stock (with no small lift from the Journal) has gotten within 5% of his $10 price target.

Well, maybe Brocade (BRCD) won’t be sold, after all.

Oppenheimer analyst Ittai Kidron, who has previously expressed doubts about the likelihood of a near-term deal, despite a recent WSJ report that said the company has begun seeking a buyer, today repeated his doubts - and downgraded the stock to Perform from Outperform.

Xyratex (XRTX), a provider of storage subsystems, doesn’t get the same kind of ink that’s spilled on the larger and better-known players in the IT storage sector like Brocade (BRCD), NetApp (NTAP) and EMC (EMC). But it sure is a hot stock: the shares are are up  14% today, 36% for the month to date, and a gaudy 550% since bottoming at just under $2 in February.