Wunderlich Maintains Buy on Silicon Graphics International

Wunderlich is out with its report today on Silicon Graphics International

, maintaining Buy. In its report, Wunderlich writes, "Silicon Graphics has recently been subjected to scrutiny by short sellers claiming the company's FY11 reported revenue growth is due primarily to mere accounting benefits. According to their thesis, a change in revenue recognition rules and the acquisition of SGI Japan accounted for all but 2% of SGI's FY11 revenue. Though the complex situation surrounding SGI's recent accounting changes may cause this claim to appear valid on its face, a thorough review of the company's financial statements in context with the reality on the ground reveals a fuller picture of the underlying strength of SGI's business. We maintain our Buy rating and $22 target. SGI is on the WSI Best Ideas list." Shares of SGI closed Monday at $13.72.