Goldman Sachs Starts QLogic (QLGC) at Neutral

Goldman Sachs initiates coverage on QLogic (NASDAQ: QLGC) with a Neutral. PT $12.00.

Goldman analyst says, "We view QLogic’s assets as a combination of healthy cash flow generation from the Fibre Channel HBA business and a call option on potential future gains in 10GbE CNAs, InfiniBand, and adjacencies such as Fibre Channel switching. We expect the shares to perform in line with our IT hardware universe, however, given heightened macroeconomic risks and the uncertain growth trajectory of the 10GbE opportunity. If 10GbE growth is more muted than expected, we believe investors may come to view QLogic as a capital allocation story. The company manages opex diligently and has the stated goal of returning capital to shareholders through share buybacks that are proportional to the company’s free cash flow."

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

Shares of QLogic closed at $13.79 yesterday.

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• ICICI Securities Resumes Oberoi Realty Ltd (OBER:IN) at Buy (1)
• Axis Capital Limited Assumes Jubilant Foodworks Ltd (JUBI:IN) at Reduce (3)
• Canaccord Starts Galiano Gold (GAU:CN) at Buy