Shares of Aliso Viejo’s QLogic Corp., a maker of electronics for data storage networks, jumped Tuesday after an analyst upgraded the stock.
The company’s shares closed up more than 8% on a recent market value of $1.7 billion.
RBC Capital Markets Corp. analyst Amit Daryanani boosted his rating to “outperform” from “sector perform” and increased his price target to $17 per share, up from $15 per share.
QLogic was trading at around $14.50 per share on Tuesday.
Daryanani said QLogic should see an uptick in demand as Intel Corp. rolls out its newest lineup of storage systems, according to an Associated Press report.
He also cited QLogic’s conservative financial outlook and its widening profit margins as reasons why the stock should rise, the report showed.
In an earlier announcement on Tuesday, QLogic announced two design wins with storage industry heavyweight NetApp Inc. for a new technology that promises to bridge everyday corporate networks with more robust storage networks.
