UPDATE: FBN Securities Downgrades Silicon Graphics to Sector Perform; Lowers PT

According to a research report published today, FBN Securities downgraded Silicon Graphics Intl.

to Sector Perform and decreased its PT from $18 to $12. FBN Securities explained in the report, “SGI just reported a slight revenue miss but a large EPS miss due to weak margins (-3pp Q/Q) that were from weak profitability in Europe as well as from weaker service and product mix. Even though it is commencing restructuring actions in Europe, we believe that this region could remain unprofitable for the next 1-1.5 years. With a new CEO expected in the next few months, we believe that SGI's stock will not outperform until a new CEO is hired at the earliest.” Silicon Graphics closed yesterday at $14.37.