Citigroup Upgrades Xyratex

Analyst Paul Mansky expects an improved outlook for the data storage technology company's disk drive capital spending

Citigroup upgrades data storage technology company Xyratex (XRTX ) to buy from hold.

Analyst Paul Mansky says upgrading Xyratex on an improved outlook for disk drive capital spending. He cites Seagate Technology's (24% of sales) recently raised capital budget and expected increases from Western Digital (5% of sales).

He also sees Maxtor returning to purchasing in 2006. He remains concerned about Xyratex's decelerating storage systems business, but expects this to be more than offset by upside from infrastructure segment.

Mansky raises his fiscal 2005 (ending November) sales and earnings per share estimates to $640 million and $1.49 from $630 million and $1.45. He sees fiscal 2006 to $737 million to $1.60 from $715 million to $1.47, and fiscal 2007 to $852 million to $1.73 from $827 millino to $1.61.

All of the views expressed in this research report accurately reflect the research analyst's personal views regarding any and all of the subject securities or issuers. No part of analyst compensation was, is or will be, directly or indirectly related to the specific recommendations or views expressed in this research report.
Standard & Poor's Regulatory Disclosure

Any advice, analysis, or recommendations contained in articles labeled "Insight from Standard & Poor's" reflect the views of Standard & Poor's, which operates separately from and independently of BusinessWeek Online. It is possible that BWOL may from time to time publish information that is not consistent with advice, analysis, or recommendations that are published by Standard & Poor's. Standard & Poor's and BusinessWeek Online are each units of The McGraw-Hill Companies, Inc.

BW MALL SPONSORED LINKS

Ken Fisher | The 8 Biggest Mistakes Investors Make Improve the performance of your portfolio while decreasing the level of risk for your investments.
FxPro.com Trade FOREX like a Pro.$100 min to START ACCESS 3 trading platforms w/ one Acct: 70 currencies. 40 CFDs. Futures and Stocks. Metals.
Allstate® Auto Insurance People Who Switched Saved Average of $353. Get a Quote in Minutes!
Scan the whole market No Trading. Software to scan the whole market for great stocks. New!
Options Trading is Easy as 1-2-3 Option Trading is easy with Bernie Schaeffer's free Options Advisor Newsletter. Try it now for free.

Buy a link now!

Get BusinessWeek directly on your desktop with our RSS feeds. XML

Add BusinessWeek news to your Web site with our headline feed.

Click to buy an e-print or reprint of a BusinessWeek or BusinessWeek Online story or video.

To subscribe online to BusinessWeek magazine, please click here.

Learn more, go to the BusinessWeekOnline home page