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Sycamore Networks (SCMR) shares are trading higher today after Credit Suisse analyst Paul Silverstein upped his rating on the company to Outperform from Neutral, lifting his price target to $31, from $22. Silverstein said the upgrade is driven by the company’s new mobile broadbard bandwidth optimization product; but he also notes that at yesterday’s close the stock traded at about a 10% discount to the company’s net cash position - you get the operations for less than nothing.

He now sees a loss for FY 2010 of 29 cents a share, versus a previous estimated loss of 33 cents. His FY 2011 loss estimate is reduced to 29 cents, from 49 cents. For FY 2012, he now sees a profit of 22 cents, up from a previous forecast of a loss of 49 cents.

The stock closed yesterday at $20.56; Silverstein estimates that cash at the end of the July 2010 fiscal year will be $21.73 a share.

SCMR today is up $1.18, or 5.7%, to $21.74.
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