UPDATE: Cantor Fitzgerald Initiates Hold, $18.50 Target on QLogic Corporation

Cantor Fitzgerald initiates its coverage on QLogic Corporation

with a Hold rating and a price target of $18.50 as company has ample cash reserves but is short on growth catalysts. Cantor Fitzgerald comments, "The company is among the most profitable in our coverage sector, but maturing core markets and underinvestment in new routes to growth continue to challenge the top line. The proposed sale of the InfiniBand business to Intel is key to future direction. Funneling proceeds to product and channel development indicate the company believes in its future growth. Using proceeds to effect a recap (estimated ~5%) drives near-term earnings upside, but signals growth is behind the company." QLGC closed at $16.58 a share on Tuesday.