Xyratex Continues To Stand On Its Own

Xyratex Ltd. 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: Storage Infrastructure: New equipment addressing substrates, media cleaning, and head testing, along with qualifying additional hard drive partners. Networked Storage Systems: Expanding existing relationships with IBM IBM 3Par becoming much more material as HP HPQ scales it Stronger demand with Dell DELL, EMC EMC, and Compellent 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. Click here to get trading ideas that could bring you a 100% return.