UPDATE: JP Morgan Downgrades QLogic to Underweight, Lowers PT to $12.50

A report from J.P. Morgan states that it has downgraded the rating to Underweight and lowered the price target from $20 to $12.50 on QLogic Corporation (NASDAQ: QLGC).

In the report, JP Morgan writes, “We believe QLogic faces muted long-term growth prospects as its legacy Fibre Channel business faces increasing headwinds and the competition in Ethernet-based solutions appears to be much stiffer. Storage remains a major focus of CIOs, but we think the slow adoption rate of FCoE and the prospect of new IT projects being tabled or delayed in a macro slowdown suggests that storage component vendors could be negatively impacted more than systems houses such as NetApp and EMC”.

QLGC closed yesterday at $13.79.