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QLogic (NASDAQ:QLGC) was upgraded by Zacks from a “neutral” rating to an “outperform” rating in a research report issued to clients and investors on Wednesday. The firm currently has a $12.00 price target on the stock. Zacks‘s target price points to a potential upside of 22.82% from the company’s current price.

Zacks’ analyst wrote, “QLogic reported better-than-expected fourth-quarter fiscal 2014 results with both earnings and revenues beating the Zacks Consensus Estimate. Management provided an optimistic guidance for the first quarter of fiscal 2015. Though higher investments in engineering and intensifying competition will hurt profitability, yet we believe that QLogic will continue to benefit from contract wins from original equipment manufacturers (OEMs) in the near term. The acquisition of Brocade’s adapter business is expected to boost revenues in 2014 and beyond. Moreover, innovative product pipeline, new technologies and additional savings from its restructuring initiatives will drive profitability in the long run. Thus, we upgrade our recommendation from Neutral to Outperform and set a price target of $12.00. “

Shares of QLogic (NASDAQ:QLGC) traded down 0.72% on Wednesday, hitting $9.70. 278,241 shares of the company’s stock traded hands. QLogic has a 52 week low of $9.29 and a 52 week high of $13.07. The stock has a 50-day moving average of $9.95 and a 200-day moving average of $11.27. The company’s market cap is $845.8 million.

QLogic (NASDAQ:QLGC) last announced its earnings results on Thursday, May 1st. The company reported $0.24 EPS for the quarter, beating the Thomson Reuters consensus estimate of $0.22 by $0.02. The company had revenue of $115.70 million for the quarter, compared to the consensus estimate of $113.30 million. During the same quarter in the prior year, the company posted $0.17 earnings per share. The company’s quarterly revenue was down 1.0% on a year-over-year basis. On average, analysts predict that QLogic will post $0.95 earnings per share for the current fiscal year.

Other equities research analysts have also recently issued reports about the stock. Analysts at TheStreet downgraded shares of QLogic from a “buy” rating to a “hold” rating in a research note on Tuesday, May 6th. Separately, analysts at Aegis downgraded shares of QLogic from a “buy” rating to a “hold” rating in a research note on Friday, May 2nd. Finally, analysts at Piper Jaffray raised their price target on shares of QLogic from $11.00 to $12.00 in a research note on Friday, May 2nd. Two equities research analysts have rated the stock with a sell rating, four have issued a hold rating and two have given a buy rating to the company’s stock. The stock presently has an average rating of “Hold” and a consensus price target of $12.36.

QLogic Corporation, designs and supplies network infrastructure products that provide, enhance and manage computer data communication.

To view Zacks’ full report, visit Zacks’ official website.

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