Accuray Rated Overweight At Piper Jaffray (ARAY)

Piper Jaffray is reiterating its Overweight rating and $8 price target on shares of Accuray Incorporated ARAY, after the company provided much stronger than expected Q4 results. In a note to clients, Piper Jaffray writes, "ARAY reported very strong new order growth and improved profitability on Tuesday, though the light FY11 outlook may temper some investor enthusiasm. While we attribute some of the FY11 discord to overly aggressive analyst expectations (including us) and continued confusion over the impact of platinum service revenue, we believe there are a number of variables that may ultimately push numbers higher over the next 12 months that leave us encouraged. All-in ARAY reported in-line revenues, better than expected margins and profitability, and impressive new order growth." Shares of Accuray gained 9 cents yesterday, to close at $6.58.