Xyratex Continues To Stand On Its Own
Xyratex Ltd. (NASDAQ: XRTX) is viewed continually as attractive by Brean Murrya Carret & Co., which states that it thinks pretty simple math will allow the stock to work through the fall, as long-term prospects are favorable for Xyratex.
Xyratex is believed to be able to generate revenue and EPS in the upper half of its guidance range (currently ($385-435M and $0.87-1.16), and more importantly, November guidance is expected to be stronger than consensus estimates, according to Brean Murray Carret & Co.
2011 opportunities include:
New equipment addressing substrates, media cleaning, and head testing, along with qualifying additional hard drive partners.
Networked Storage Systems:
Expanding existing relationships with IBM (NYSE: IBM)
3Par becoming much more material as HP (NYSE: HPQ) scales it
Stronger demand with Dell (NASDAQ: DELL), EMC (NYSE: EMC), and Compellent (NYSE: CML).
Brean Murry Carret & Co. maintains its Buy rating and $24 price target, estimating 2011 earnings at $4.00.
Xyratex, Inc. closed yesterday at $17.80.
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