Sterne Agee Lowers EPS Estimates on STEC

A report from Sterne Agee reiterates its Neutral rating and lowers its FY11/12 EPS estimates from $.76/$.78 to $.69/$.09 on STEC (NASDAQ: STEC).

The report states, “If the Gen 4 controller can compete effectively on price/IOPS by the end of 1Q12, then there could be some inherent value in the stock as the company could begin to re-establish share. Until then, we see the stock trading sideways as there is no clear indication pricing pressure will alleviate from now unto 2Q12."

STEC closed yesterday at $11.70.