UPDATE: Cantor Fitzgerald Initiates Xyratex with Hold, $12 PT on Barriers to Impending Market Recovery

Cantor Fitzgerald initiates its rating on Xyratex

with a Hold rating and a price target of $12 a share. Cantor Fitzgerald notes, "We are initiating coverage on Xyratex shares with a HOLD rating and $12 price target, or an expected +12% return including dividend yield. While the shares appear inexpensive if we were to assume now is the cycle trough, we view there to be too many obstacles impeding a recovery with the market -- the latter of which remains in doubt. This view is reflected in our below-consensus estimates from 3Q:12E forward." XRTX closed at $10.98 on Monday.