Needham & Company Downgrades Xyratex (XRTX) to Hold; Valuation Call

Needham & Company downgraded Xyratex (NASDAQ: XRTX) from Buy to Hold.

Analyst, Glenn Hanus, said, "XRTX reported a solid F1Q - continuing to execute well in each of its business lines, NSS and SI. Our change in rating to Hold reflects the stock hitting our target ($17), our very slight reduction in F13E rev./EPS, and absence of visibility on a catalyst to move estimates, and hence the stock, higher. Rating change does not reflect a change in our view of the company, its strategy or execution. There were no significant surprises in the EPS report/Call."

FY12 EPS estimate lowered from $1.72 to $1.67 and FY13 from $1.81 to $1.70.

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 $17.82 yesterday.

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