Blow Out Quarter Boosts Sentiment Behind Emulex (ELX, QLGC)

Emulex Corporation (NYSE: ELX) engages in the design, development, and supply of storage networking infrastructure solutions that connect storage, servers, and networks. Emulex has positively pre-announced Dec Quarter results that are 18% above street estimates.

Analysts at Jeffries & Company Inc. have reiterated a Buy and raised the price target to $14. Emulex is seeing improving demand as IT spending recovers and is also benefiting from an uptick in server sales driven by new processor technology. Solid results are also expected from market leader Qlogic (NASDAQ: QLGC) thus reinforcing the view that the sector will see sunny days ahead.