UPDATE: Deutsche Bank Reiterates Hold Rating, Lowers PT on STEC

In a report published Wednesday, Deutsche Bank reiterated its Hold rating on STEC

, but lowered its price target from $7.00 to $5.00. Deutsche Bank noted, “Guides lower as company tries to transition its business. STEC's better-than-expected F3Q-12 results were overshadowed by F4Q-12 guidance which was well below Consensus expectations. Lower volumes remain a GM pressure and the company continues to operate below breakeven levels of $70M per quarter. STEC is trying to expand its sales focus from OEMs to opportunities in enterprise and the channel. While we see expanding the customer base as a smart move, the success of this strategy is not guaranteed. We have reduced our estimates and PT from $7 to $5 to reflect lower demand and increased uncertainty. We have also introduced FY-14E. Maintain Hold.” STEC closed on Tuesday at $5.63.