UPDATE: Credit Suisse Downgrades Fusion-io to Neutral on Lower Visibility
Credit Suisse downgraded Fusion-io (NYSE: FIO) from Outperform to Neutral and lowered the price target from $50.00 to $17.00.
Credit Suisse commented, "Fusion-io had significantly weaker than expected revenue guidance, which was attributed to delays and push-outs in spending at key customers, including Facebook and Apple. While this could prove temporary, our concern is that the current multiple does not easily support such hiccups, leaving more risks to the downside. … Management attributed revenue weakness to delayed rollouts at strategic customers, such as Facebook and Apple, stating they have become more efficient in utilizing the technology. Additionally, several newer wins are not ramping as quickly as expected.
Fusion-io closed at $20.09 on Wednesday.
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