UPDATE: Piper Jaffray Initiates QLogic Corporation at Neutral on Mt Rainier Caution

Piper Jaffray initiated coverage on QLogic Corporation

with a Neutral rating and an $11.00 price target. Piper Jaffray said, "Despite the recent positive pre-announcement, we are not convinced that this momentum will continue into FY14. QLogic continues to lag Emulex in the 10Gb Ethernet space, which we believe is the largest growth opportunity for the company. That said, the valuation is certainly not expensive, particularly with shares trading at ~2x cash. If we are wrong in our initial assessment of Mt Rainier and the company actually experiences modest incremental revenue growth from this product, without affecting the company's existing OEM relationships, then valuation would look much more interesting." QLogic Corporation closed at $11.05 on Tuesday.