J.P. Morgan analyst Mark Moskowitz this morning flip-flopped his ratings on the host-bus adapter plays, moving to Neutral from Underweight on QLogic (QLGC), while shifting Emulex (ELX) to Underweight from Neutral.
“While consensus estimates on both stocks likely face one more downward reset, we think the stocks have adjusted for more bad news,” he writes in a research note. But he adds that comparing the two, there is less execution and market risk at QLGC than ELX over the next 12 months.� “While we are cautious on HBAs, if investors seek exposure to the group, then we recommend QLogic,” he writes.
He cut estimates today for both companies.
In today’s trading:
- QLGC is down 26 cents, or 1.5%, to $17.38.
- ELX is down 28 cents, or 2.7%, to $10.16.
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