Needham & Company analyst Richard Kugele reiterated a Buy rating and boosted his price target on Silicon Graphics International Corp. (NASDAQ: SGI) to $13.00 (from $12.00) following solid Q2 results which shows the turnaround is progressing.

Kugele commented, "We are encouraged by the progress at SGI, with solid F2Q results showing evidence of an increasing number of larger deals from more diverse Federal and corporate customers and initial progress with the UV 300H initiative. Our view is bolstered by SGI recording its highest bookings level in nearly 3 years. Looking forward, while the new term loan weighs on EPS, we believe it affords SGI the flexibility to fulfill the large DoD deals without hampering additional multimillion transactions. We are increasing estimates, reiterating our Buy rating and the company's place as one of our top 2015 picks. Increasing our target to $13 from $12 (~16% upside potential vs. 1/28 close) based on 14x C15E EBITDA as our confidence in SGI's outlook has improved."

For an analyst ratings summary and ratings history on Silicon Graphics International Corp. click here. For more ratings news on Silicon Graphics International Corp. click here.

Shares of Silicon Graphics International Corp. closed at $11.16 yesterday.