Wunderlich Reiterates Buy, $22 PT on Silicon Graphics in Wake of CEO Resignation

Wunderlich maintains its Buy rating and $22 price target on Silicon Graphics

in the wake of CEO Mark Barrenchea's resignation, as it believes the business and product inertia will continue to drive company results. Wunderlich says, “Yesterday, SGI announced that Mark Barrenchea is resigning as CEO to become president and CEO of an unnamed global software company. We believe Mark was instrumental in the turnaround of Rackable SGI and was among the key architects behind the strategy to acquire SGI out of bankruptcy. That stated, we believe the company's products and processes currently in place have adequate inertia to drive momentum forward during the search for a replacement CEO.” SGI closed at $11.48 per share on Wednesday.