Needham & Company Maintains a 'Buy' on Xyratex (XRTX); Raising F12 EPS on Higher GM%

Needham & Company maintains a 'Buy' on Xyratex (NASDAQ: XRTX) price target raised from $11 to $13.

Needham analyst says, "Overall, XRTX is seeing continuing strength in its NSS business offset by SI weakness but our outlook for GM% is improved based on ongoing cost reduction efforts and customer/product mix leading us to raise our F12 EPS. Trading about 3x ’12 EPS (x-cash) and 0.1x sales, XRTX valuation appears compelling." (Needham raises FY12 from $1.14 to $1.57)

For more ratings news on Xyratex click here and for the rating history of Xyratex click here.

Shares of Xyratex closed at $9.15 yesterday.

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