Shares of Fusion-io, Inc. FIO respond to Needham analyst Richard Kugele's report that shares are expected to outperform in the new year and is a top pick in 2014.
Kugele commented that Fusion-io will outperform as “1) a crowded short at 19% of the float, with more positive than negative catalysts, in our view; 2) new management with operational expertise; and 3) investor misconceptions around competition.”
The analyst noted that he was originally skeptical on the company's ability to secure non-hyperscale data center volume and post performance metrics. Despite these doubts, Fusion-io has true IP and patents and is expected to continue to innovate. In addition, the analyst sees new CEO Shane Robison as a “deliberate executive, systematically transforming the once-frenzied start-up culture of FIO into a more operationally consistent tech leader.”
Kugele highlighted Fusion-io and Western Digital Corporation WDC as the top picks in 2014. Needham has a Buy rating on Fusion with a $16.00 price target. Fusion closed at $8.91 on Tuesday and shares have traded as high as $9.82 today, up 10.21%.
Market News and Data brought to you by Benzinga APIs© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Loading...
date | ticker | name | Price Target | Upside/Downside | Recommendation | Firm |
---|
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in