UPDATE: Sterne Agee Downgrades Fusion-IO to Neutral Following CEO/CMO Departures

In a report published Wednesday, Sterne Agee analyst Alex Kurtz downgraded the rating on Fusion-IO

from Buy to Neutral. In the report, Kurtz noted, “While we could envision scenarios where the new CEO Robison steadies the company after Flynn's departure or the board decides to pursue a sale of the company, both outcomes are far too difficult to predict at this time. Flynn was an integral part of future technology development at the company and view his departure as creating too much near-term uncertainty to remain Buy rated, despite what we continue to see as large, multi-year opportunities for Fusion-io in the Server/Storage markets.” Fusion-IO closed on Tuesday at $13.51.