UPDATE: Edison Investment Research Initiates Coverage on Emulex on Positive 2014 Outlook

In a report published Friday, Edison Investment Research analyst Bridie Barrett Schmidt initiated coverage on Emulex ELX, but did not assign a rating or price target. In the report, Edison Investment Research noted, “Emulex's longer-term prospects should become clearer as visibility on its ability to reinstate its position in 10gE and leverage synergies from Endace become apparent. With only modest revenue growth forecast, the $30m cost savings and the $200m share repurchase programme should drive strong earnings growth into 2015. This should support the shares' value on the downside, and evidence of successful execution of its strategy could see 10-20% rating upside and could drive significant earnings upgrades.” Emulex closed on Thursday at $6.81.