UPDATE: Cantor Fitzgerald Reiterates Hold Rating, Lowers PT on Xyratex

In a report published Wednesday, Cantor Fitzgerald reiterated its Hold rating on Xyratex Ltd.

, but lowered its price target from $10.50 to $8.50. Cantor Fitzgerald noted, “We maintain our HOLD rating while lowering our target price from $10.50 to $8.50. The reset more than confirmed our reservations, and catalysts appear at least two quarters out. However, stripping our ‘bad revenue' from our reduced forecast (NetApp and Thailand replacement capacity), assigning 50% discounts to respective peer group multiples (EMS and Semi Cap Equip) and adding back $100M in cash suggests fair value of $8.50, roughly in-line with the closing price.” Xyratex Ltd. closed on Tuesday at $8.70.