Northwest brokerage and investment firm McAdams Wright Ragen is restarting coverage of supercomputer maker Cray.

MWR analyst Sid Parakh has been keeping an unofficial eye on the company for a while now and formally initiated coverage today with a "buy" rating and a $10 price target. The company's shares were down slightly today to $7.50.

Cray took a big hit in May when it disclosed the first of two negative developments that smacked the stock down. Parakh, in his opening report, put it this way:

Cray reported that it was experiencing product development delays for its BlackWidow (BW) and XMT products, pushing the launch timeline into late 2007 and 1H2008, respectively. In early June, the company announced a six-to-eight week delay in the launch of its XT4 Quad-Core product due to a postponement in the availability of a key component. The combination of these two events caused Cray to lower its 2007 outlook from its initial revenue expectation of $230 - $260 million down to under $200 million. Additionally, the company scrapped its earlier operating margin guidance of 3% - 7%, implying negative operating margin expectations.