Needham & Company Maintains a 'Buy' on Emulex (ELX); Lowers PT

Needham & Company maintains a 'Buy' on Emulex (NYSE: ELX), lowers PT from $14 to $12.

Needham analyst says, "Consistent with the solid demand environment in the sector we see in 2Q, we believe ELX is tracking to at least meet F4Q (June) Street expectations of $0.10 EPS on $120M (guide is $0.08 - $0.12 on $117-123M). In terms of its revenue mix, we believe that both HSP and EPS are tracking to our estimates of $95M and $24.5M, respectively. Within HSP we expect the FC business to be slightly ahead of our model offset by 10GE slightly below our aggressive model of 50% q/q growth. But 10GE should still achieve healthy q/q growth...Our sense is GM% is tracking to plan ~63% and OPEX should grow as planned ~$4M q/q due to extra week in quarter and higher legal exp. Consistent with our model."

For more ratings news on Emulex click here and for the rating history of Emulex click here.

Shares of Emulex closed at $8.08 yesterday.

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