Citigroup Reiterates Buy Rating, $22 PT On QLGC
By BenzingaStaffL
January 28, 2011 9:14 AM
January 28, 2011 9:14 AM
Citigroup is reiterating its Buy rating and $22 PT on QLogic Corporation (NASDAQ: QLGC).
“Our Buy rating on QLogic Corporation (NASDAQ: QLGC) is predicated on three points: 1) QLGC's dominant position (~70% share) in FC HBAs for industry standard x86 servers and favorable positioning in the emerging converged adaptor market; 2) Improved growth prospects for QLGC's Fibre Channel switching business, driven by ramping OEM design wins; 3) Strong balance sheet, aggressive buyback and undemanding valuation (9.5x F12M ex-cash op. EPS),” Citigroup writes.
“Our $22 target price is based on 13x forward 13-24 month non-GAAP EPS est $1.67, in-line with QLGC's trailing two-year multiple.”
QLogic Corporation closed Thursday at $17.93.
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