UPDATE: Goldman Sachs Upgrades LSI Corporation to Buy on Margin Expansion

Goldman Sachs raised its rating on LSI Corporation

from Neutral to Buy and reiterated its $9 price target. Goldman Sachs noted, "We are upgrading LSI to Buy from Neutral as we see the potential for both top-line growth and margin expansion, driven by (1) growth in client and enterprise solid state drives (SSDs) given LSI's best-in-class SSD controller; (2) growth in networking from new customer design wins and as the drag from legacy product declines subsides; and (3) higher gross margin from an increased mix of solid state and networking products, with operating margin expansion due to tight opex controls." LSI Corporation closed at $7.24 on Monday.