Shares of Aliso Viejo’s QLogic Corp. closed down on Thursday after the maker of electronics for data storage networks was downgraded by a Wall Street analyst.
The stock closed down more than 3% on a recent market value of $2 billion.
Canaccord Adams Inc. analyst Paul Mansky cut his rating to “hold” from “buy” on concerns that QLogic’s shares aren’t likely to climb much higher, according to an Associated Press report.
Mansky said in a note to clients that he doesn’t see the company’s stock breaking through his price target of $21.50 until it starts beating Wall Street’s estimates, which he doesn’t expect will happen until later in the year, the report showed.
QLogic closed at $20.15 on Thursday.
Still, he said QLogic is still among the strongest performers in its sector and the company’s outlook for the current quarter should match analysts’ expectations.
For the three months through June, analysts are looking for QLogic to post profits of $31 million on sales of $146 million.
