Market Overview

UPDATE: Aegis Capital Initiates Coverage on QLogic on Market Leader Position

Share:
Related QLGC
D.A. Davidson Says Cavium Got QLogic For A Fair Price
QLogic Downgraded To Hold As Acquisition Deal Seems To Be Priced In

In a report published Thursday, Aegis Capital Corp. analyst Jayanta Datta initiated coverage on QLogic Corporation (NASDAQ: QLGC) with a Buy rating and $15.00 price target.

In the report, Aegis Capital Corp. noted, “QLogic is a highly profitable market leader in the server and storage connectivity industry. The firm is resuming top-line growth after several quarters of retrenchment. It is the leader in an industry sector that is essentially a duopoly. We conservatively estimate that revenue grows 4% in FY2015 after declining in FY2013 and FY2014. Given the firm's high and stable ~68% gross margin and 20% operating margin, the revenue growth should lead to significant earnings growth. The balance sheet is strong with almost $5 per share in cash and no debt. The company generates large amounts of free cash flow and actively buys back stock. It has been consistently profitable and recently recorded its 73rd consecutive quarter of non-GAAP profitability. In our view, the stock is undervalued with near-term upside potential from continued earnings strength. We are initiating coverage with a Buy rating and a 12-month price target of $15.00 per share.”

QLogic closed on Wednesday at $12.33.

Latest Ratings for QLGC

DateFirmActionFromTo
Jun 2016Argus ResearchDowngradesBuyHold
Aug 2015Summit ResearchUpgradesHoldBuy
Jul 2015BMO CapitalDowngradesOutperformMarket Perform

View More Analyst Ratings for QLGC
View the Latest Analyst Ratings

Posted-In: Aegis Capital Corp. Jayanta DattaAnalyst Color Initiation Analyst Ratings

 

Related Articles (QLGC)

View Comments and Join the Discussion!