Foundry Networks "outperform," target price raised

06/11/07 - RBC Capital Markets

NEW YORK, June 11 (newratings.com) - Analysts at RBC Capital Markets maintain their "outperform" rating on Foundry Networks Inc (FDRY), while raising their estimates for the company. The target price has been raised from $18 to $20.

In a research note published this morning, the analysts mention that despite the significant appreciation of nearly 65% in Foundry Networks’ share price in the past one year, there is upside potential to the company’s share price. The revenue estimates for 2007 and 2008 have been raised from $558 million to $575 million and from $609 million to $625 million, respectively, to reflect the rising uptake of the company’s new products, XMR and MLX. The EPS estimates for 2007 and 2008 have been raised from $0.64 to $0.66 and from $0.76 to $0.78, respectively.