UPDATE: Piper Jaffray Upgrades Fusion-IO to Overweight, Raises PT on Share Undervalue

In a report published Tuesday, Piper Jaffray analyst Andrew J. Nowinski upgraded the rating on

from Neutral to Overweight, and raised the price target from $12.00 to $17.00. In the report, Piper Jaffray noted, “We are upgrading shares of FIO to Overweight and raising our price target to $17 (prev $12), based on 2.3x EV/CY14E Sales, which is in line with the peer group. The PCIe flash storage market is large (estimated at $2.1B by 2017) and rapidly expanding (growing at a 23.5% CAGR), however, Fusion-io 's current valuation does not reflect this opportunity, in our view. While there is competition in the space, we believe Fusion-io has the most comprehensive enterprise flash portfolio and is also the only vendor that has secured OEM agreements with all the major server vendors. As such, we believe shares of FIO are undervalued and do not reflect an appropriate scarcity premium.” Fusion-IO closed on Monday at $13.60.