QLogic (QLGC) Gains on Morgan Stanley Upgrade to Overweight

QLogic (NASDAQ: QLGC) is higher Wednesday (+6%) after Morgan Stanley analyst Katy Huberty upgraded the stock from Equalweight to Overweight with a price target of $15.00 (from $11.50).

Huberty said QLogic has nearly 100% exposure to the server market, which drove their upgrade of the IT Hardware sector today. They now expect server growth of 10% in 2015 due to strong cloud demand, Windows Server 2003 support expiration, and Intel Grantley refresh.

Huberty commented, "Its Host Product revenue (~75% of total in the past) and Windows server shipment Y/Y growth are highly correlated (87%). The stock saw significant multiple expansion in 2009 as the macro environment improved and Intel's Nehalem server refresh drove a return to unit growth. Therefore, we believe QLGC is one of the best ways to play our server refresh thesis in 2015."

For an analyst ratings summary and ratings history on QLogic click here. For more ratings news on QLogic click here.

Shares of QLogic closed at $11.98 yesterday.

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