UPDATE: FBN Securities Lowers PT to $9 on STEC

A report from FBN Securities reiterates its Sector Perform rating and lowers its price target from $13 to $9 on STEC (NASDAQ: STEC).

The report states, “The company reported a slight revenue and earnings beat, but its FQ4/Dec. revenue guidance of $55-$57M is materially lower than prior consensus of $72.5M. Moreover, the company is noting increased price competition in SLC SSDs, where competitors are pricing roughly 30% below STEC's price. These factors are leading us to estimate that NG GM% will decline from 46% in FQ3 to 42% in FQ4 (remember its long-term target is 40%)."

STEC closed yesterday at $11.70.