Sony Tape Shortage Could Be a Positive for Avid
Sony (NYSE: SNE) HDCAM SR tapes are in very short supply “owing to disruption by the Sendai earthquake on production in Japan,” J.P. Morgan reports.
“We note that online sales are subject to shipping uncertainty, and there have been press reports of prices spiking more than 4-fold since March,” J.P. Morgan writes. “We believe this will spur TV Broadcast industry participants to move away from tape-based workflow. We believe this is a positive for Avid Technology Inc. (NASDAQ: AVID).”
Sony closed Monday at $25.09; Avid closed at $16.58.
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.