UPDATE: FBN Securities Upgrades Silicon Graphics International to Outperform
FBN Securities raised its rating on Silicon Graphics International (NASDAQ: SGI) from Sector Perform to Outperform and increased its price target from $8 to $11.
FBN Securities noted, "The company just reported EPS and GM above consensus for FQ4/June, and it is guiding revenue and EPS better than expected for FQ1/Sept. We think that the company is starting to stabilize from multiple moving parts (low-margin deals, Europe [where there was a 25% headcount reduction action recently], management transitions). Furthermore, with a UV2 rationalization in opex to $43-45M/quarter by the end of F2013/June from $48M in the recent quarter, and with the purging of all of the $87M in low-margin deals by the end of F2013, the company can experience material operating expansion."
Silicon Graphics International closed at $6.82 on Wednesday.
Latest Ratings for SGI
|Sep 2014||DA Davidson||Upgrades||Neutral||Buy|
|Nov 2013||DA Davidson||Initiates Coverage on||Neutral|
|Oct 2013||FBN Securities||Downgrades||Outperform||Sector Perform|
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.