NEW YORK (AP) ¿ Brocade Communications Systems Inc. is unlikely to find a buyer soon or beat expectations in its next round of quarterly results, Oppenheimer & Co. said Monday, downgrading the company's shares. In a client note, Oppenheimer analyst Ittai Kidron said there is no clear buyer for the San Jose, Calif.-based network-gear maker despite a report in The Wall Street Journal a week ago saying the company is for sale. Hewlett-Packard Co.'s existing offerings would overlap too much with Brocade's, he said, adding that IBM Corp. isn't likely to jump back into the hardware business, Oracle Corp. has publicly denied interest, Juniper Networks Inc. would find such an acquisition "too big to swallow" and Dell Inc. is busy with its $3.9 billion buyout of Perot Systems Corp. Since the Journal's report, Brocade shares have climbed 23 percent. The shares rose 28 cents, or 3 percent, to $9.69 in premarket trading Monday. Seeing no clear catalyst for pushing the shares higher, Kidron suggested investors take some profits, cutting his rating to "Perform" from "Outperform" and removing his $10 price target.
TheStreet’s Fundamentals of Investing Course will teach you the keys to making the right decisions in any market.
TheStreet’s Personal Finance Essentials Course will teach you money management basics and investing strategies to help you avoid major financial pitfalls.
TheStreet Courses offers dedicated classes designed to improve your investing skills, stock market knowledge and money management capabilities.
More from Opinion
Adobe Is a Compelling Growth Story at a Reasonable Price
Given consistent sales growth, expectations for expanding margins and a solid SaaS backlog, Adobe appears to qualify as a strong GARP (growth at a reasonable price) play.
Bad News for Chip Equipment Firms Isn't Necessarily Bad News for All Chipmakers
Chip stocks in general are selling off following a downgrade that's arguably only bad news for certain parts of the sector.
Google's $2.6-Billion Deal for Looker Drives Home Its Big Cloud Ambitions
While Looker operates in a very competitive market, it does have some unique technology strengths that could be useful as Google tries to grow its enterprise cloud position.
Uber's Earnings Call Provides More Fuel For Lyft's Shares Than Uber's
The ride-hailing leader says the U.S. market is now behaving more 'rationally.' But its broader profit outlook still looks pretty murky.