J.P. Morgan Intiates Coverage on Fusion-io

J.P. Morgan has initiated coverage on Fusion-io

. In the report, J.P. Morgan writes, "We are initiating coverage of Fusion-io (

) at Neutral. We recommend exposure to the FIO story but not with an outsized position relative to our other coverage stocks, like Apple (

). In our view, FIO stands to benefit from its first-mover status in PCIe SSD-based data acceleration solutions, but lofty valuation multiples leave little room for growing pains. We are concerned that FIO's core customer base is not large enough yet to absorb acute shocks from lumpy strategic customer revenue patterns. Plus, increasing competition (some of which have deep pockets) and FIO's OpEx investments could limit substantial operating leverage improvements in the near to mid-term." J.P. Morgan rated Fusion-io a Neutral with a price target of $35.00. Fusion-io closed Monday at $32.13.