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Brean Murray Carret & Co. Maintains a 'Buy' on Xyratex (XRTX); Strong Nov Q and Feb Q Guide - But Thesis Remains on Track

January 6, 2012 10:23 AM EST
XRTX Hot Sheet
Rating Summary:
    0 Buy, 6 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 19 | Down: 16 | New: 82
Brean Murray Carret & Co. maintains a 'Buy' on Xyratex (NASDAQ: XRTX) price target of $17.00.

Brean analyst says, "Better-than-expected Nov Q revenue and EPS and a better-than-Street Feb Q EPS guide leaves our thesis right on track. Although not yet giving 2012 guidance given a lack of visibility into absolute hard drive supply, our take is that XRTX is essentially leaving its revenue commentary heading into 2012 unchanged (so we're staying at $1.2 bln in storage system revenue, although tweaking up our hard drive equipment revenue to $200 mln from $150 mln to account for incremental orders from Western Digital (NYSE: WDC)(Buy-rated)...Our CY12 revenue and EPS rise to $1.4 bln and $1.80 from $1.35 bln and $1.34. We could see potential for EPS upside to ~$2.00 depending on demand and mix of both the storage systems and drive equipment business."

For an analyst ratings summary and ratings history on Xyratex click here. For more ratings news on Xyratex click here.

Shares of Xyratex closed at $14.16 yesterday, with a 52 week range of $7.58-$17.17.


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