UPDATE: Deutsche Bank Cuts PT to $7 on STEC; Guidance Lowered

Deutsche Bank reduces its price target from $9 to $7 on Buy-rated STEC

as more drawn-out qualifications drive guidance lower. Deutsche Bank says, "STEC reported mixed F1Q-12 results and guided F2Q-12 significantly below Street expectations. Mgmt blamed the lower guidance on qualifications of new Gen 4 products taking longer than expected. While STEC believes sales will bottom in F2Q-12, we believe the stock remains a wait-and-see story, with F3Q-12 guidance the next significant catalyst. We have reduced our FY-12E and FY-13E." STEC closed at $7.70 on Tuesday.