QLogic, Emulex: “Worst Over” For Host Bus Adapter Group

Caris & Co.’s Shebly Seyrafi this morning raised his rating on QLogic (QLGC) to Above Average from Average, asserting that “the worst is over” for makers of HBAs, or host bus adapters, key components on storage area networks.

“Although there were many signs of weakness for HBAs in the March quarter, our channel checks suggest that March ended well for HBAs and the outlook for the June quarter is encouraging,” he writes.

Seyrafi emphasizes that he is not making a call today on the March quarter, which he says could come in light of expectations.

Seyrafi also repeated his Above Average rating on Emulex (ELX), and increased his price target on the company to $22 from $20, for similar reasons.

This morning, QLogic is up 72 cents at $17.85; Emulex is down 17 cents at $18.66.

QLGC vs. ELX 1-yr chart