SoundView upgraded McData (MCDTA) to outperform from underperform.
Analyst Glenn Ingalls says the upgrade was based on inputs that suggest execution risk surrounding 2Gb product transition and the launch of a 6140 140-port director are now behind the company. Ingalls isn't making a call that the September quarter is a lock, but he thinks the company's chances of at least meeting numbers are favorable, and if there were a shortfall, it would be small.
While he can't say McData has bottomed, he thinks there's less downside than most other names in storage. He thinks McData has above average prospects for delivering upside to estimates over the next two to three quarters, and can move higher from here on better results. He has a $9 target.