Jefferies Upgrading RadiSys

Jefferies & Co. is out with a research report on RadiSys Corp. RSYS and is upgrading shares to Buy from Hold, and it has a $10 price target on shares. In a note to clients, Jefferies & Co. writes, "We're raising our rating on RadiSys shares from Hold to Buy as we believe the valuation is compelling, particularly in light of the company's recent acquisition of Continuous Computing. Our target price remains $10.00 and is based on our sum-of-the-parts analysis which assumes: 1) no value for the legacy products; and 2) $289 million in value for the Next Gen Comms business (or 1.2x 2012 sales)." Shares of RSYS gained 8 cents yesterday to close at $8.02.