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NEW YORK — Shares of Xyratex Ltd. surged Thursday after the data storage and storage technology company posted better-than-expected results for its fiscal second quarter.
Xyratex reported a net loss for the three months ended May 31, but it was smaller than what analysts were expecting, and revenue was higher.
The company said while the economic turmoil continued to pressure its business, its customers are starting to see signs of stabilizing demand.
On Thursday, Stifel Nicolaus analyst Aaron Rakers upgraded Xyratex to "Buy" from "Neutral," saying while the company's results continue to reflect a challenging business, the stock's value "presents an attractive upside opportunity for patient value-oriented investors." His target price is $7.
Shares of U.K.-based Xyratex rose 78 cents, or 20 percent, to $4.73 in afternoon trading. In the past 52 weeks, the stock has traded between $1.55 and $19.36.
