UPDATE: Bank of America Reiterates Underperform Rating, Raises PT on Violin Memory on Mixed Factors

In a report published Thursday, Bank of America analyst Scott D. Craig reiterated an Underperform rating on

, and raised the price target from $3.50 to 4.00. In the report, Bank of America noted, “F2Q15 reported revenue/EPS loss were roughly in line with our $19mn/($0.21), with slightly better GM% (54.7% vs. our 52.2%) and lower opex during the quarter. Guidance too was in line with expectations with F3Q implied EPS of negative $0.19. Even so, management remains optimistic following operational/strategy changes and believes F2Q sales to mark the bottom. We remain attracted to the high-growth, flash array market, but VMEM's continued cash-burn (expect FCF usage of $81mn for F2015 vs. 63mn prior), despite improving earnings, keeps us on the sidelines.” Violin Memory closed on Wednesday at $4.19.