Summit Research Expects Solid Quarter for QLogic Corporation

In a report published Monday, Summit Research analyst Srini Nandury reiterated a Buy rating and $14.00 price target on

. In the report, Summit Research noted, “QLGC is to report F3Q15 results after market close on Thursday (01/29). At minimum we expect Qlogic to meet consensus estimates, but strongly suspect that Qlogic will beat estimates, driven by lower Opex and better GM. The key variable to GM expansion is driven by solid Fibre Channel (FC) revenue and thus expect GM to be better than our 62% estimate. With the Grantley refresh underway, many companies in the eco-system have reported solid results and we expect Qlogic to benefit from the refresh as well. While the secular pressures continue unabated – i.e. virtualization, move to cloud, emergence of hyper-converged server/storage configurations etc., we believe management is executing well on what it can control and managing Street expectations well. We reiterate our BUY rating on the stock and maintain our $14 PT.” QLogic Corporation closed on Friday at $13.12.