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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.

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


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