Fusion-io Shares Respond to Needam's Call Stock Will Be a Top Pick in 2014
Shares of Fusion-io (NYSE: FIO) respond to Needham analyst Richard Kugele's report that shares are expected to outperform in the new year and is a top pick in 2014.
Kugele commented that Fusion-io will outperform as “1) a crowded short at 19% of the float, with more positive than negative catalysts, in our view; 2) new management with operational expertise; and 3) investor misconceptions around competition.” The analyst noted that he was originally skeptical on the company's ability to secure non-hyperscale data center volume and post performance metrics. Despite these doubts, Fusion-io has true IP and patents and is expected to continue to innovate. In addition, the analyst sees new CEO Shane Robison as a “deliberate executive, systematically transforming the once-frenzied start-up culture of FIO into a more operationally consistent tech leader.”
Kugele highlighted Fusion-io and Western Digital (NASDAQ: WDC) as the top picks in 2014. Needham has a Buy rating on Fusion with a $16.00 price target. Fusion closed at $8.91 on Tuesday and shares have traded as high as $9.82 today, up 10.21%.
Latest Ratings for FIO
|Jul 2014||Monness Crespi Hardt||Terminates||Neutral|
|Jun 2014||Credit Suisse||Downgrades||Outperform||Neutral|
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