Emulex Corp. (NYSE:ELX) was upgraded by equities research analysts at Piper Jaffray Cos. from a “neutral” rating to an “overweight” rating in a research note issued on Tuesday, TheFlyOnTheWall.com reports. The firm currently has a $9.00 price target on the stock, up from their previous price target of $8.00. Piper Jaffray Cos.’s target price indicates a potential upside of 19.36% from the stock’s previous close.
The analysts wrote, “Emulex followed through with previous plans to lower OPEX, committing to cut an additional $20M, while also initiating a $200M share repurchase plan ($100M by FY14). While we acknowledge that the Fibre Channel market remains in secular decline, we believe Emulex now has significant leverage in the model to deliver solid earnings growth, particularly if the company can leverage its comprehensive portfolio in the Ethernet market to drive top-line growth above current estimates. Therefore, with an improved cost structure and a more favorable capital allocation policy in place, coupled with a conservative top-line outlook, we are upgrading shares to Overweight and raising our price target to $9 (prev $8), based on 13x (unchanged) our new CY14E EPS.”
Emulex Corp. (NYSE:ELX) traded up 3.45% on Tuesday, hitting $7.80. 692,772 shares of the company’s stock traded hands. Emulex Corp. has a one year low of $5.72 and a one year high of $8.99. The stock has a 50-day moving average of $7.68 and a 200-day moving average of $7.26. The company’s market cap is $715.4 million.
Emulex Corp. (NYSE:ELX) last announced its earnings results on Wednesday, October 30th. The company reported $0.13 EPS for the quarter, beating the Thomson Reuters consensus estimate of $0.10 by $0.03. The company had revenue of $114.80 million for the quarter, compared to the consensus estimate of $111.60 million. During the same quarter last year, the company posted $0.19 earnings per share. Emulex Corp.’s revenue was down 3.8% compared to the same quarter last year. On average, analysts predict that Emulex Corp. will post $0.60 earnings per share for the current fiscal year.
A number of other analysts have also recently weighed in on ELX. Analysts at Zacks upgraded shares of Emulex Corp. from a “neutral” rating to an “outperform” rating in a research note to investors on Thursday, November 7th. They now have a $8.50 price target on the stock. Separately, analysts at JPMorgan Chase & Co. raised their price target on shares of Emulex Corp. from $6.50 to $8.00 in a research note to investors on Thursday, October 31st. They now have an “underweight” rating on the stock. Finally, analysts at Barclays raised their price target on shares of Emulex Corp. from $8.00 to $9.00 in a research note to investors on Thursday, October 31st. They now have an “equal weight” rating on the stock. Two research analysts have rated the stock with a sell rating, eight have assigned a hold rating and five have given a buy rating to the company. The stock presently has a consensus rating of “Hold” and a consensus price target of $8.00.
Emulex Corporation (NYSE:ELX) is a provider of a range of network convergence solutions that connect servers, storage, and networks within the data center.
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