Xyratex A Long-Term Favorite Of Brean Murray Carret & Co.
Brean Murray Carret & Co. has published a research report on Xyratex Ltd. (NASDAQ: XRTX) and currently views the company as a long-term favorite.
In the report, Brean writes "We believe this is likely more of an in-line quarter (Street of $420M and $0.74 vs. guidance of $395M-$445M and EPS of $0.60-$0.86.) For the Network Storage Solutions unit (the storage systems business, or NSS; ~80% of revenue and 60% of gross profit $'s) we're expecting revenues of at least $351M vs. guidance of $335M - $365M, and for Storage Infrastructure (the disk drive capex business, or SI; 20% of revenue and 40% of gross profit $'s) we're expecting ~$70M vs. guidance of $60M – $80M. We believe, if anything, the tension likely lies somewhat to the upside to our estimates, primarily from NSS, as both Network Appliance (~40% XRTX customer) and Equalogic (Dell Inc. (DELL, $13.69, Buy) – we estimate ~15% customer) have reported solid quarters and healthy ongoing demand trends."
Brean Murray Carret & Co. maintains its Buy rating and $24 price target.
Xyratex closed yesterday at $16.59.
