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Needham & Company Maintains a 'Buy' on Xyratex (XRTX); F4Q11 Beats Estimates; Tweaking Outlook Up Slightly

January 6, 2012 10:00 AM EST
XRTX Hot Sheet
Rating Summary:
    0 Buy, 6 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 20 | Down: 11 | New: 38
Needham & Company maintains a 'Buy' on Xyratex (NASDAQ: XRTX) price target raised from $13 to $17.

Needham analyst says, "XRTX reported a strong F4Q on NSS rev. upside, overall GM% upside and lower OPEX. Our F12 outlook is tweaked up mostly on one time $50M SI rev. benefit with NSS ~unchanged. XRTX issued wide guide range for F1Q on HDD supply uncertainties...XRTX F4Q non-GAAP EPS of $0.73 on $387.6M vs. our $0.34 on $365M, and street $0.33 on $359.5M. Revenue upside on continuing strength in NSS. SI in-line. GM 17.7% vs. our 16.4% est. with upside in both segments. Op-ex (ex. restructuring) $40.9M vs. our $44M, all contributing to EPS beat."

Needham raises FY12 EPS estimate from $1.57 to $1.72.

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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