Needham & Company Maintains Bullish Stance on Cray (CRAY), Says Trends Remain Positive

Needham & Company reiterated a Buy rating and $24 price target on Cray (NASDAQ: CRAY) Monday saying business trends at Cray remain positive, perhaps even a bit more upbeat since they hosted them for investor visits in NYC in early May.

"Cray appears on track to meet its 2Q rev. guide of $80M driven by recent acceptance of Titan upgrade (~$40+M) at ORNL. It also has strong and improving visibility to $500M guide for ’13," analyst Glenn Hanus states. "We believe Ivy Bridge is on schedule, which is critical to on-time delivery/Acceptances in 2H."

The analyst also notes the deal flow/pipeline in the HPC arena continues to be strong worldwide. Appro is ramping as Cray is leveraging its existing customer base with product line extension into cluster arena. In addition, storage opportunities in HPC appear strong as well with Cray on track to meet our $63M ’13 target. Lastly, investment in Big Data ($20M in ’13) continues in Graph Analytics and Hadoop segments.

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

Shares of Cray closed at $19.23 yesterday.

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