) shares to hold from buy.
Analyst Shebly Seyrafi says the downgrade is based strictly on valuation. The analyst notes the shares have exceeded his $40 price target and are now trading in excess of 55 times his $0.77 CY 03 EPS estimate. He would revisit his rating if the shares were to dip below $40.
He continues to believe that EMLX is an outstanding well-positioned company in a rapidly growing market. He views EMLX as a good company with a good story. He believes there are a number of stock catalysts to watch over the next six months.