UPDATE: Sterne Agee Initiates STEC at Neutral

Sterne Agee is out with its report today on STEC

, initiating STEC at Neutral. In a note to clients, Sterne Agee writes, "We believe STEC could be an attractive stock once consensus GMs are reset, given the growth in the overall market. There are also bull views that M&A could offer an exit for STEC, which is a potential outcome. However, the options are becoming limited with SanDisk buying Pliant, Samsung now working at EMC, Western Digital acquiring Hitachi's disk business and Micron making progress in the enterprise space. STEC currently trades at 11x CY12 Adj PE." At the time of posting, shares of STEC were trading pre-market at $16.90, up 0.54% from Monday's close.