2 Stocks With Upgrades: VRSN, ELX

NEW YORK ( TheStreet) -- These two stocks received upgrades from TheStreet Ratings on Monday: VeriSign ( VRSN) and Emulex ( ELX).

VeriSign

The Internet infrastructure company reported third-quarter profit last week of $240 million, or 32 cents a share, an increase from earnings a year earlier of $132 million, or 17 cents.

ThinkEquity analysts raised their price target on the company to $44 from $42 on Friday.

"Management has indicated intention to potentially increase expense rates and infrastructure spending targeting advanced and highly specialized domain security services, while the M&A strategy continues to focus on fit with the domain management business, and quality of revenue," ThinkEquity analysts said in a report.

Shares of VeriSign were upgraded to a buy from a hold on Monday by TheStreet Ratings.

VeriSign gets a B- grade from TheStreet Ratings with a $41.49 price target. Shares closed at $36.32 on Friday.

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Emulex

The data-storage company on Thursday reported fiscal second-quarter profit of $15 million, or 17 cents a share. A year earlier, Emulex posted a loss of $41 million, or 47 cents.

ThinkEquity analysts upgraded the stock to a buy with a $12 price target in part because "we now believe ELX has workarounds in place to address a potential loss of its lawsuit with Broadcom BRCM."

The analysts continued: "This represented ELX's second consecutive quarter of strong results not only against street expectations but also vis-a-vis its competition. We are impressed with ELX's recent stability and track-record and attribute it to much stronger execution at the company."

Shares of Emulex were upgraded to a hold from a sell rating on Monday by TheStreet Ratings.

TheStreet Ratings gives Emulex a C grade. The stock closed Friday at $10.66.

>>To see these stocks in action, visit the 2 Stocks With Upgrades portfolio on Stockpickr.

-- Written by Alexandra Zendrian

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