Goldman Sachs recommends continuing to own shares of Brocade Communications Systems (nasdaq: BRCD - news - people ) "in the mid-$5 range." Goldman said the networking storage company's competitive position has much improved in recent weeks and the fundamental changes, positive earnings-per-share revisions and improved free cash flow haven't yet been fully reflected in the shares. The research firm said Brocade's June 9 analyst day may serve as a catalyst for the stock, but that "probably depends more on the overall tech tape at this point than anything else." Goldman noted that the company has outperformed peers but Brocade shares are down on an absolute basis so far in 2004. On average McData (nasdaq: MCDTA - news - people ), Emulex (nyse: ELX - news - people ) and QLogic (nasdaq: QLGC - news - people ) each missed revenue estimates by 8% in the most recent quarter and calendar 2005 EPS estimates were cut by 26%, Goldman said; meanwhile Brocade slightly exceeded revenue estimates and calendar 2005 EPS estimates were revised positively by nearly 20%. Goldman said Brocade shares should reset in a fair value trading range of $6.50 to $8.00 "as the year progresses."