Piper Jaffray: Fusion-io Could Experience Strong Buying Opportunity

In a research report published earlier today, Piper Jaffray said shares of Fusion-io Inc.

could come under pressure as early as tomorrow due to the end of a lock-up period for 43.4M shares. In the repot, Piper Jaffray explained, “While we expect most pressure to come from rank & file employee selling, a 10% drop in share price to ~$20 would equate to 40x CY13 consensus estimates, which we would view as a strong buying opportunity. Our optimism on FIO is based on our belief that the Street significantly under-estimates the company's growth potential at Facebook and Apple, which could drive earnings growth in excess of 50% for the next 2-3 years.” Piper Jaffray maintains its Overweight ratings and $38 PT on Fusion-io, which closed yesterday at $23.00.