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Brocade Falls As Analyst Removes Top Pick Rating

The Associated Press

NEW YORK (AP) — Shares of Brocade Communications Systems Inc. tumbled Wednesday after an analyst removed the data storage equipment maker from his "Conviction Buy" list, citing an absence of catalysts for the stock.

Brocade shares lost 50 cents, or 6.7 percent, to $6.94 in afternoon trading.

In a client note, Goldman Sachs analyst Min Park kept a "Buy" rating and $8 price target for the stock. Though Park took the company off the list, the analyst said that the thesis that Brocade's expanding product offerings, leading data center position and "tightening" partnerships with original equipment manufacturers "still has significant runway left," even though its stock has recently risen.

Since being placed on the "Conviction Buy" list on April 21, Brocade's stock has risen 61 percent. The "Conviction Buy" list includes the stocks that Goldman Sachs expects to outperform.