UPDATE: Morgan Stanley Reiterates on QLogic Following Ethernet Deal

In a report published Wednesday, Morgan Stanley analyst Katy L. Huberty reiterated an Underweight rating on

, but removed the $10.50 price target. In the report, Morgan Stanley noted, “QLogic's acquisition of Broadcom's Ethernet business gives it access to higher growth market with exposure to cloud data centers and begins to transform the company into an I/O platform play rather than just a connectivity supplier. The deal is expected to be EPS accretive to both QLogic and Broadcom.” QLogic closed on Tuesday at $11.45.