Ahead of the Bell: Emulex downgraded

NEW YORK (AP) - A Jefferies analyst downgraded Emulex Corp. shares on Wednesday, saying expectations are “likely too high” for the second half of the year for the data storage equipment maker.

Analyst Munjal Shah downgraded Emulex to “Hold” from “Buy” and lowered his target price to $10 from $12.

A successful second half of the year, he said, depends on several factors, including robust server shipments and timely launches of new servers from IBM and other companies. But data coming from the server markets is mixed, Shah said.

Citing research firm Gartner Inc., the analyst said server shipments declined 5 percent quarter-over-quarter in the March quarter due to seasonality, but were “surprisingly flat” in the second quarter.

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