UPDATE: Bank of America Initiates Coverage on Violin Memory on Hyper Growth at Attractive Valuation

In a report published Tuesday, Bank of America analyst Scott D. Craig initiated coverage on

with a Buy rating and $10.00 price target. In the report, Bank of America noted, “Violin Memory (VMEM) is positioned well within flash storage, which is growing quickly, and we believe valuation is attractive at these levels (2.1x our EV/C2014E sales). We are initiating with a Buy on 1) first mover advantage in a fast growing industry; 2) strong hardware IP; 3) expanding product portfolio (PCIe cards, caching appliances etc.); 4) experienced management; and 5) solid relationship with Toshiba (should help with NAND supply/pricing & potential sales opportunities).” Violin Memory closed on Monday at $7.30.