Hexcel (HXL) (SIRI) (SMOD) (YOKU) Get Ratings Downgrades

Hexcel Co. (NYSE: HXL), Sirius XM Radio Inc. (NASDAQ: SIRI), Smart Modular Tech (NASDAQ: SMOD) and Youku.com Inc (NASDAQ: YOKU) downgraded by analysts.

Wedbush downgraded Hexcel Co. (HXL) from an “Outperform” rating to a “Neutral” rating. They set a price target of $22.00 on the company.

Lazard Capital downgraded Sirius XM Radio Inc. (SIRI) from a “Buy” rating to a “Neutral” rating.

Wedbush downgraded Smart Modular Tech (SMOD) from an “Outperform” rating to a “Neutral” rating. They placed a price target of $9.25 on the firm, down from $11.00.

Goldman Sachs (NYSE:GS) downgraded Youku.com Inc (YOKU) from a “Buy” rating to a “Neutral” rating.

Seagate (NYSE:STX), Western Digital (NYSE:WDC), Hewlett-Packard (NYSE:HPQ), SMART Modular (Nasdaq:SMOD) Top IT Hardware Picks of Needham in 2011

Talking technology trends emerging in 2011, Needham & Company said their favorite picks are Seagate Technology (NYSE:STX), Western Digital (NYSE:WDC), Hewlett-Packard (NYSE:HPQ) and SMART Modular Technologies (Nasdaq:SMOD).

Needham noted, "Although there are multiple ways to participate in the industry and technology trends we see unfolding in 2011, our top picks for investors are Seagate Technology (Strong Buy), Western Digital (Strong Buy), Hewlett-Packard (Strong Buy) and SMART Modular Technologies (Buy). For STX and WDC, we see the companies benefiting from a recovery in pricing and margins within the industry as well as robust demand from PC and data center spending. HPQ is a top pick given its broad product reach into PCs, servers, networking and services, as well as its likely meaningful participation within the tablet world. Finally, we see SMOD as a highly leveraged play on PC and server growth (with the call option of the SSD business). Further, we view the stock’s recent pullback owing to aggressive DRAM pricing as a unique buying opportunity. In this report, we take a look back at 2010 and the events that shaped the performance within our coverage universe. We then look forward to 2011 and some of the themes and investment opportunities for investors."

Seagate closed Wednesday at $14.70, down $0.08, or 0.54 percent. Western Digital closed at $32.79, losing $0.20, or 0.61 percent. Hewlett-Packard closed at $44.20, gaining $0.57, or 1.31 percent. SMART Modular closed at $5.91, up $0.11, or 1.90 percent.

SMART Modular (NASDAQ:SMOD) PT, EPS Slashed by Needham

It's hard to figure out why Needham maintained their current rating on SMART Modular Technologies (NASDAQ:SMOD), as their latest quarter was a disappointment, and there aren't any real catalysts to suggest a turnaround anytime soon.

Needham said, "While F1Q was disappointing, the DRAM pricing headwind was to some degree expected. We believe F2Q should represent the trough for SMOD, with F3Q stable and a robust snapback in F4Q. With tangible book value of $4.74 and estimates now reflecting the new environment, we see significant leverage in the model driving upside later in the year. Consequently, we maintain our rating and 10x multiple, but lower our target on the reduced outlook.

"We adjust estimates accordingly with F2Q being lowered to $173M and $0.10, vs. our initial estimates of $211M and $0.23. FY2011 is lowered to $756M and $0.65 vs. $895M and $0.97, and FY2012 is lowered to $798M and $0.69 vs. $969M and $1.00."

Needham & Company maintains a "Buy" on SMART Modular Technologies, which closed Friday at $5.58, down $0.79, or 12.40 percent. Needham slashed their price target on them from $11 to $6.50.