Dougherty & Co Downgrades OCZ Technology Group (OCZ) to Neutral; Growing Number of Uncertainties
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Price: $1.18 -9.92%
Rating Summary:
6 Buy, 8 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 35 | New: 23
Rating Summary:
6 Buy, 8 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 35 | New: 23
Trade OCZ Now!
Dougherty & Co downgraded OCZ Technology Group (NASDAQ: OCZ) from Buy to Neutral with a price target of $7.20 (from $13.50).
Analyst, Mark Kelleher, said, "The list of uncertainties for the company has grown significantly with the August quarter report. OCZ does not know how much Flash it will be able to secure for its third (November) quarter. The company is attempting to engineer new SSD products that incorporate other Flash geometries (19 and 20 nm Flash), but it is uncertain how long it will take to bring those products to market, as well as how much of those other geometries will be available when the products do come to market. In addition, if the company continues to use its higher-end (enterprise) Flash to fulfill ‘client’ SSD demand, gross margins will continue depressed. Without gross margins improving, it becomes difficult to move to a cash-generating position, which then raises the possibility that the company will need to raise additional capital."
FY13 revenues cut from $611M to $528.6M and EPS from $0.02 to (0.50). FY14 revs from $1B to $850M and EPS from $0.85 to $0.24.
For an analyst ratings summary and ratings history on OCZ Technology Group click here. For more ratings news on OCZ Technology Group click here.
Shares of OCZ Technology Group closed at $4.35 yesterday, with a 52 week range of $3.90-$10.05.
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Analyst, Mark Kelleher, said, "The list of uncertainties for the company has grown significantly with the August quarter report. OCZ does not know how much Flash it will be able to secure for its third (November) quarter. The company is attempting to engineer new SSD products that incorporate other Flash geometries (19 and 20 nm Flash), but it is uncertain how long it will take to bring those products to market, as well as how much of those other geometries will be available when the products do come to market. In addition, if the company continues to use its higher-end (enterprise) Flash to fulfill ‘client’ SSD demand, gross margins will continue depressed. Without gross margins improving, it becomes difficult to move to a cash-generating position, which then raises the possibility that the company will need to raise additional capital."
FY13 revenues cut from $611M to $528.6M and EPS from $0.02 to (0.50). FY14 revs from $1B to $850M and EPS from $0.85 to $0.24.
For an analyst ratings summary and ratings history on OCZ Technology Group click here. For more ratings news on OCZ Technology Group click here.
Shares of OCZ Technology Group closed at $4.35 yesterday, with a 52 week range of $3.90-$10.05.
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