Wunderlich Raises PT on Silicon Graphics International to $16 (SGI)

Wunderlich is out with its report today on Silicon Graphics International (NYSE: SGI), raising its price target from $12 to $16.

In a note to clients, Wunderlich writes, "Silicon Graphics reported EPS of $0.44 on revenue of $185.9 million versus our estimate for $0.01 on revenue of $141.6mm. Computing drove the upside with 42% yr./yr. growth. Guidance for the second half was conservative, but our full-year estimates move up considerably from an estimated loss of $0.07/share to earnings of $0.13/share. Our FY11 revenue estimate increases from $551mm to $583mm. We believe the quarter reflects strong market demand for SGI's product portfolio, operating discipline, and a clear demonstration of the potential operating leverage of the SGI business model. We reiterate our Buy rating on SGI shares and are increasing our price target to $16 per share (from $12)."

Shares of SGI closed yesterday at $10.90, up 7.39% from Tuesday's close.