The higher price target comes after the San Jose, CA-based networking hardware and software supplier posted better-than-anticipated earnings and revenue for the 2016 fiscal third quarter last week.
Earnings and revenue beat the firm's expectations mostly due to strength in IP products related to Brocade's acquisition of Ruckus Wireless and a lower share count and tax rate.
But BMO said the results were a "mixed bag."
"The headline performance was better, but outside of a better-than-expected performance from Ruckus there were not many positives in the quarter. We remain on the sidelines as the timeline to a recovery in several of Brocade's key businesses remains uncertain," the firm wrote in a note received today.
Ruckus revenues were $78 million during the period, above guidance of $50 million to $60 million, BMO noted.
"Some of the upside was related to a lower-than-expected impact from purchase accounting adjustments, though demand for WLAN equipment remains very healthy and we expect Ruckus to continue to be a growth driver for Brocade," the firm added.
SAN (storage area network) was in line with expectations, but Brocade's management noted elongating sales cycles and IP revenues would have missed if not for the Ruckus upside, BMO said.
Shares of Brocade were flat in late-morning trading on Monday.
Separately, TheStreet Ratings Team has a "Buy" rating with a score of B- on the stock.
The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, attractive valuation levels, expanding profit margins and notable return on equity.
The team believes its strengths outweigh the fact that the company has had sub par growth in net income.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: BRCD