An analyst upped his rating on Aliso Viejo-based QLogic Corp., a day after the networking electronics maker upped its outlook for the recently ended quarter.
Paul Mansky of Canada’s Canaccord Genuity Inc. upped QLogic to “buy” from “hold” and set a price target for the stock of $20.
QLogic’s shares closed up nearly 3% to about $17 with a market value of nearly $1.9 billion.
The company, which makes switches, host bus adapters and other products that speed the flow of data on networks, offers what Mansky called growth prospects at a reasonable stock price.
On Thursday, QLogic Corp. upped its profit forecast for the three months through September.
The company said it expects a profit of $34.9 million to $36 million for quarter.
That’s up from an earlier forecast of $31.6 million to $34.9 million.
Strong sales and lower operating expenses drove the higher outlook, according to Chief Executive H.K. Desai.
The company expects sales of $146 million to $147 million, which would be up 2% to 3% from the prior quarter.
Earlier, QLogic forecast a broader revenue range of $143 million to $147 million.
Analysts on average have been expecting a quarterly profit of $33.8 million. They also expect QLogic sales of $145.6 million.
QLogic’s quarterly results are due Oct. 21.
