Brocade Shares Jump After RBC Upgrade

NEW YORK (AP) — Shares of Brocade Communications Systems Inc. climbed Thursday after an analyst upgraded the data storage equipment maker, saying that concerns that the company may break debt covenants are "dissipating."

RBC Capital Markets analyst Mark Sue upgraded Brocade to "Outperform" from "Sector Perform." He said the company now looks to have "ample cash flow from operations to service the debt."

With the debt worries easing, Sue said investors may now turn their focus on the company's strong position in the fibre channel market and its solid relationship with manufacturers, among other things. Brocade makes fibre channel switches and related software, which is used to connect servers and storage systems. ...