Emulex to Grow its Host Business (ELX, GS)

Goldman Sachs GS has given a “Neutral” rating to Emulex ELX. The company is expected to announce its June quarter results largely in line with consensus estimates. Its embedded business is likely to stabilize, however, it will maintain its downward trajectory on a quarter over quarter basis. Emulex (ELX) is expected to show good growth in its core Host business in the current quarter. For the September quarter, the company is expected to target organic revenue of $106.5 million. The company stock has been valued at $11.25 which is 1.4x target EV/S multiple of estimated CY11 revenue of $459 million.