Brocade Communications

(BRCD)

was down 18% in early afternoon after hitting a 52-week low of $24.50.

Morgan Stanley Dean Witter

downgraded the stock to neutral from outperform and lowered 2001 and 2002 earnings estimates, saying that the storage-network parts maker's outlook has deteriorated since its last warning. Morgan Stanley cited the weak economy and channel checks that show weak sales for Brocade's new products.

Brocade fell 10% on Friday.