UPDATE: BMO Capital Markets Reiterates on Emulex on Focus on Profitability

In a report published Thursday, BMO Capital Markets analyst Keith Bachman reiterated a Market Perform rating on Emulex ELX, and raised the price target from $7.00 to $8.00. In the report, BMO Capital Markets noted, “We are raising our CY14 EPS estimate from $0.57 to $0.68, driven by higher revenues and lower opex, offset by a higher tax rate. As result of our estimate change, we are raising our target price from $7 to $8, based on 10x our CY14 EPS estimate plus cash. We believe that self-help companies that are reducing opex will continue to be well received by investors. We remain Market Perform on ELX, with the focus on profitability and expense management, balanced by ongoing litigation issues. Bottom line, we believe ELX's prospects are improving.” Emulex closed on Wednesday at $7.29.