Analyst Mark Sue says the company is seeing solid demand trends for its mid-range Sphereon 4500 fabric switch, and its high end 140 port 6000 series Director. For the fourth quarter, he expects the company to post a strong showing with original equipment manufacturing partners EMC and IBM. He looks for the unveiling of the latest SANavigator release in late January, which should help maintain product cycle momentum.
Sue raised the 12 cents 2003 earnings per share estimate to 20 cents, and upped the $375 million revenue estimate to $406 million. He also raised the 12 month to 24 month price target range to $12-$13.
Sue reiterates his near-term buy rating. He thinks McData is well placed to take market share from competitors.