An analyst downgraded his rating on shares of Aliso Viejo-based QLogic Corp.,but not on fears of a downturn at the maker of networking electronics.
Keith Bachman of BMO Capital Markets, part of Canada’s Bank of Montreal, cut his rating on QLogic to “market perform” from “outperform,” according to an Associated Press story.
The analyst said he believes QLogic is fairly valued at a market capitalization of $2.2 billion.
The company is unlikely to see many positive revisions to its earnings guidance in 2009 with the economic downturn, Bachman said.
“To be clear, our rating change is not based on the September quarter, but on valuation,” Bachman said. “Hence, we are not bearish on QLGC.”
QLogic has been the county’s strongest technology stock this year, rising about 20%. QLogic had been up as much as 40% for the year in August, before pulling back with the broader market downturn.
The company makes circuit boards and boxes that speed the flow of information on data storage networks. It has benefited from less exposure to financial customers than key rival Emulex Corp. of Costa Mesa.
