Needham & Company Downgrades Cray (CRAY) to Hold

Needham & Company downgraded Cray (NASDAQ: CRAY) from Buy to Hold.

Analyst Richard Kugele commented, "We are downgrading Cray to Hold from Buy as the company’s risk profile has increased due primarily to the delays in availability of key processors (especially Knights Landing), on which the bulk of new orders and backlog depend. Although CRAY also had a general soft start to the year, the company reiterated its full C16 revenue target (with a more back-end loading to 4Q) as it is hopeful that it can receive the parts in time. However, the 4Q level (now 60% of rev) remains at risk of a material reduction in that outlook if the parts are not available. Consequently, although this issue is outside of CRAY’s control, we are downgrading to a Hold pending better visibility of the key processors."

For an analyst ratings summary and ratings history on Cray click here. For more ratings news on Cray click here.

Shares of Cray closed at $38.91 yesterday.

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