NEW YORK (TheStreet) -- Shares of Brocade Communications Systems (BRCD) were spiking 22.32% to $10.63 on heavy trading volume early Monday afternoon as Bloomberg reports that the network provider is in advanced discussions to sell itself.

A deal could be announced as soon as this week. 

Potential buyers include component maker Broadcom (AVGO), sources told Bloomberg. 

About 5.56 million shares of Brocade have been traded so far today, well above the company's average trading volume of roughly 4.36 million shares a day. 

TST Recommends

Separately, TheStreet Ratings team rates the stock as a "buy" with a ratings score of B-.

Brocade's strengths such as its revenue growth, reasonable valuation levels, largely solid financial position with reasonable debt levels by most measures and expanding profit margins outweigh the fact that the company has had sub par growth in net income.

You can view the full analysis from the report here: BRCD

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 article's author. 

Image placeholder title