Foundry Networks "outperform," target price raised

04/07/06 - RBC Capital Markets

NEW YORK, April 7 (newratings.com) - Analysts at RBC Capital Markets reiterate their "outperform" rating on Foundry Networks Inc (FDRY), while raising their estimates for the company. The target price has been raised from $17 to $20.

In a research note published yesterday, the analysts mention that the company's performance in the March quarter is expected to have been robust. Foundry Networks' robust performance is being driven by stable Fed sales and the performance of NA enterprises, the analysts say. The EPS estimates for 2006 and 2007 have been raised from $0.60 to $0.62 and from $0.68 to $0.72, respectively.