Benchmark Starts OCZ Technology Group (OCZ) at Hold; Swimming Upstream in SSD Market
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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!
Benchmark initiates coverage on OCZ Technology Group (NASDAQ: OCZ) with a Hold.
Benchmark analyst says, "While OCZ Tech is on a path to become a key player in the rapidly growing enterpriseclass SSD (solid-state drive) market, a combination of high investor expectations and high valuation multiples keeps us on the sidelines with a Hold rating."
"Given the unpredictability of OCZ Tech’s long-term EPS power, it is worthwhile to consider the risk/reward profile for the shares. Assuming the target margins for the company fail to come to fruition, and assuming operating margins stay at current levels, we believe shares could trade as low as $6.00. This base-case considers a very low EV/sales multiple (<1.0x but >0.5x). Assuming the company achieves our FY13 non-GAAP EPS estimate of $0.50 and assuming investors believe target margins can be achieved at that time, we believe shares could trade at $10.00 per share (20.0x our FY13 EPS estimate)."
For more ratings news on OCZ Technology Group click here and for the rating history of OCZ Technology Group click here.
Shares of OCZ Technology Group closed at $8.34 yesterday, with a 52 week range of $1.79-$10.48.
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Benchmark analyst says, "While OCZ Tech is on a path to become a key player in the rapidly growing enterpriseclass SSD (solid-state drive) market, a combination of high investor expectations and high valuation multiples keeps us on the sidelines with a Hold rating."
"Given the unpredictability of OCZ Tech’s long-term EPS power, it is worthwhile to consider the risk/reward profile for the shares. Assuming the target margins for the company fail to come to fruition, and assuming operating margins stay at current levels, we believe shares could trade as low as $6.00. This base-case considers a very low EV/sales multiple (<1.0x but >0.5x). Assuming the company achieves our FY13 non-GAAP EPS estimate of $0.50 and assuming investors believe target margins can be achieved at that time, we believe shares could trade at $10.00 per share (20.0x our FY13 EPS estimate)."
For more ratings news on OCZ Technology Group click here and for the rating history of OCZ Technology Group click here.
Shares of OCZ Technology Group closed at $8.34 yesterday, with a 52 week range of $1.79-$10.48.
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