UPDATE: Goldman Sachs Downgrades QLogic to Sell on Lack of Positive Catalyst

Goldman Sachs reduced its rating on QLogic

from Neutral to Sell and lowered its price target from $11 to $8. Goldman Sachs said, "We expect the absence of a positive catalyst—the much-awaited Romley-led product cycle—to lead to future quarters of lowered expectations for the company and underperformance for the stock. As adoption of this new platform remains tepid, we expect investors will refocus on the long-term secular challenges facing QLogic. We expect this story would unfold as the company moves through earnings reports and updates guidance for future quarters. Meanwhile, reports from its key customers, supply chain partners, and competitors could provide additional, secondary catalysts." QLogic closed at $9.48 on Friday.