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Analyst Sees Fusion-io Takeover Price in $20 Range Given Western Digital, STEC Deal

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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

DateFirmActionFromTo
Jul 2014Monness Crespi HardtTerminatesNeutral
Jun 2014Piper JaffrayDowngradesOverweightNeutral
Jun 2014Credit SuisseDowngradesOutperformNeutral

View More Analyst Ratings for FIO
View the Latest Analyst Ratings

Posted-In: Analyst Color News Price Target Reiteration M&A Analyst Ratings

 

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