LSI: Barclays Backs Off Bearish Stance As Enterprise Spending Shows Signs Of Life

LSI (LSI) shares are trading modestly higher this morning after Barclays Capital analyst Romit Shah raised his rating on the shares to Equal Weight from Underweight. He also boosted his price target on the stock to $6, from $5.

The move reflects a new survey from Barclays hardware analyst Ben Reitzes that found an improving enterprise spending environment; Shah notes that Reitzes could be a key beneficiary with 75%-85% of sales from enterprise storage ICs, systems and networking. The survey found that storage systems sales were better than expected in Q3, and should grow in the mid-to-high single digits in Q4.

LSI today is up 10 cents, or 1.8%, to $5.54.