UPDATE: Stifel Nicolaus Downgrades Xyratex to Hold

Stifel Nicolaus lowers its rating on Xyratex XRTX to Hold from Buy on balanced risk/reward. Stifel Nicolaus says, "We are downgrading Xyratex shares to Hold from Buy as we see a more balance risk/reward profile following the ongoing strong share performance - shares are +25% YTD and +80% since the beginning of October (vs. S&P +9% and +22%, respectively). This call does not reflect a change in our fundamental view of Xyratex as we maintain our F2012 and F2013 estimates at $1.342B/$1.60 and $1.282B/$1.51, respectively." XRTX closed at $16.79 a share yesterday.