Stifel Nicolaus Maintains Buy on Xyratex

Stifel Nicolaus is out with its report today on Xyratex XRTX, maintaining Buy. In its report, Stifel Nicolaus writes, "Although Xyratex guided below expectations and it's clear that secular pressures will persist over the coming qtrs (some push of SI business into 1H2012; NetApp to Jabil overhang into 2012), we believe investor sentiment, and valuation, should result in a net-neutral/positive call coming out of the F3Q11 report. We maintain our Buy and $15 target price and highlight Xyratex's $136M in cash (no debt), or ~$4.50/sh. and ~50% of market cap – shares trading at an EV/sales of ~0.1x and ~2.7x EV/EBITDA on C2012 est." At the time of posting, shares of XRTX were trading at $9.14, down 0.11% from Thursday's close.