Auriga Starts STEC, Inc. (STEC) at Sell; Enterprise SSD Leader for Now, but Not For Long
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Price: $1.53 --0%
Rating Summary:
0 Buy, 7 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
0 Buy, 7 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Auriga initiates coverage on STEC, Inc. (NASDAQ: STEC) with a Sell. PT $7.00.
Auriga analyst says, "We believe the Enterprise SSD space will be a very high growth technology segment over the next 3-5 years, but we believe that large new entrants are likely to drive most of the adoption at storage and server OEMs. As such, we see STEC losing significant market share (from 20%+ to sub 10%) while suffering significant Operating Margin erosion (from high teens to sub 10%) over the next 3-5 years. Our 10-year DCF suggests a target price of $7, which is below the current price, thus we initiate coverage with a SELL rating."
For more ratings news on STEC, Inc. click here and for the rating history of STEC, Inc. click here.
Shares of STEC, Inc. closed at $8.96 yesterday.
Auriga analyst says, "We believe the Enterprise SSD space will be a very high growth technology segment over the next 3-5 years, but we believe that large new entrants are likely to drive most of the adoption at storage and server OEMs. As such, we see STEC losing significant market share (from 20%+ to sub 10%) while suffering significant Operating Margin erosion (from high teens to sub 10%) over the next 3-5 years. Our 10-year DCF suggests a target price of $7, which is below the current price, thus we initiate coverage with a SELL rating."
For more ratings news on STEC, Inc. click here and for the rating history of STEC, Inc. click here.
Shares of STEC, Inc. closed at $8.96 yesterday.
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