UPDATE: FBN Securities Lowering Price Target on STEC
FBN Securities is out with a research report on STEC (NASDAQ: STEC) and it is lowering its price target to $9, and it has a Sector Perform rating on shares.
In a note to clients, FBN Securities writes, "We reiterate our Sector Perform rating on STEC and lower our price target from $13 to $9. 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%)."
Shares of STEC lost $1.44 yesterday to close at $10.26, a loss of 12.31%.
