UPDATE: Wunderlich Securities Initiates LSI Corporation at Buy on Upside Potential

Wunderlich Securities initiated coverage on LSI Corporation

with a Buy rating and a $9 price target. Wunderlich Securities noted, "We believe the company is positioned to outperform its peers in 2013 due to: 1) the early move into the NAND Flash solid-state storage (SSS) markets with the company's Flash Storage Processor (FSP) and PCIe Flash Adapters (PFA), which should position LSI to benefit from the strong growth expected in this market; 2) the company's Storage systems and Server markets benefiting from the transition from 6 gig to 12 gig SAS expected to continue in 2013; and 3) design wins with its Axxia SoC solutions transitioning to production in the wireless infrastructure segment and this should help offset the challenging HDD market until a recovery later in 2013." LSI Corporation closed at $6.91 on Thursday.