UPDATE: FBN Securities Upgrades Silicon Graphics International to Outperform

FBN Securities raised its rating on Silicon Graphics International

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.