Analyst Sees Fusion-io Takeover Price in $20 Range Given Western Digital, STEC Deal
Traders in Fusion-io (NYSE: FIO) are attributing upside in the stock to some bullish comments from Mizuho analyst Abhey Lamba in a research note from Monday morning. The analyst reiterated a Buy rating and $22 price target on shares of Fusion-io.
Shares of Fusion-io last traded at $13.14, up more than 1 percent.
Based on the deal between Western Digital (NYSE: WDC) and STEC (NASDAQ: STEC), Lamba sees value around $11 per shares in Fusion-io. The analyst pointed out Fusion-io will likely receive a higher multiple given its product position as a top player in the sector.
Lamba said Fusion-io will likely get a price in the $20 range if the company is awarded an acquisition multiple half that of other enterprise class sotrage vendors.
Latest Ratings for FIO
|Jul 2014||Monness, Crespi, Hardt||Terminates||Neutral|
|Jun 2014||Credit Suisse||Downgrades||Outperform||Neutral|
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