Updated from 1:15 p.m. ESTAfter a 2-for-1 stock split last week and a run-up of 25% over three months, QLogic ( QLGC) has been on the receiving end of three downgrades in as many business days. For now, it looks like shares of the storage-gear maker may be due for a breather. But the stock has withstood the downgrades rather well, losing less ground this week than most companies in the enterprise storage sector, and there is some feeling on Wall Street that any slippage could signal a buying opportunity. "Is it a little expensive now? It is," says J.W. Seligman analyst Sunil Wagle. "The risk/reward ratio is not in favor right at the moment." Indeed, at Tuesday's close of $19.91, the stock is trading at about 29 times estimated 2006 earnings and 24 times 2007 earnings. Emulex ( ELX), the major competitor in its core business, is trading at 16 times 2006 earnings estimates and 15 times 2007 earnings, while Brocade ( BRCD), a competitor in the burgeoning market for storage switches, trades at 20 times 2006 EPS estimates and 18 times 2007 estimates, according to First Call. Even so, Wagle hasn't soured on QLogic. "I'm waiting for it to weaken a bit so we can make a buy," he says. "It's an excellent company." Seligman does not have a current position in QLogic. What do Wagle and other QLogic bulls like about the company? It's taking share from Emulex in its core market for host bus adapters, and perhaps nearly as significantly, it is moving carefully into new businesses, such as switches and high-performance computing, that should pay off in the future. Last month, for example, QLogic agreed to acquire privately held PathScale for $109 million. The company sees the buy as the price for entering the emerging market for clustered computing, which relies on networks of inexpensive servers tied together with a technology known as Infiniband. Oracle ( ORCL), for example, uses clusters to speed -- and simplify -- the processing of large databases.