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Piper Jaffray Defending OCZ Technology

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Piper Jaffray has published a research report on OCZ Technology (NASDAQ: OCZ) defending the company despite the "bear" thesis being illogical.

In the report, Piper Jaffray writes, "Shares of OCZ have succumbed to constant selling pressure over the last 4-6 weeks. The two issues we commonly hear are that NAND pricing is falling and their gross margin targets are not achievable because the new Vertex 4 isn't leveraging Indilinx controllers. Yes, NAND pricing is falling, which is a good thing, since OCZ purchases NAND. Second, whether the Vertex 4 leverages Marvell or the Indilinx chip is not relevant. All that matters is that it is leveraging the proprietary Indilinx firmware. Finally, we believe management was fully cognizant of their margin profile and the components of the Vertex 4 when they provided guidance."

Piper Jaffray maintains its Overweight rating and $17 price target on OCZ Technology, which is currently trading down $0.27 from yesterday's $5.97 closing price.

Posted-In: Piper JaffrayAnalyst Color Reiteration Analyst Ratings

 

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