Auriga Reiterates a 'Sell' on Fusion-io (FIO); Solid Revenue, but Earnings Outlook Disappoints
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Price: $11.24 --0%
Rating Summary:
6 Buy, 17 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
6 Buy, 17 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Auriga reiterates a 'Sell' on Fusion-io (NYSE: FIO) price target of $18.00.
Auriga analyst said, "We reiterate a SELL rating following a mixed earnings release that showed continued strong sales growth, but with a reduced EPS outlook moving forward. We continue to believe that current valuation suggests an unfavorable risk/reward. We view Fusion-io, the company, as a very exciting growth story, with a clear lead in the emerging PCIe SSD space, which we estimate will grow at a 97% CAGR through 2015, to a $3Bn TAM at that time. While upside potential to our near-term assumptions for both the industry and Fusion-io exist, substantial risks also exist, including increasing competition and high customer concentration."
"Solid revenue quarter driven by strategic accounts: Fusion-io reported a 169% y/y increase in revenue, to $84Mn versus our $78Mn estimate (Street at $76Mn). Strategic accounts (we believe Facebook was the driver) accounted for 57% of revenue, or roughly $48Mn, above our $40Mn estimate, while core accounts of $36Mn were once again below our $38Mn estimate. Fusion-io identified salesforce.com (NYSE: CRM)(NR) as another major customer that could develop into a key strategic customer like Apple (Nasdaq: AAPL)(Buy) and Facebook."
For an analyst ratings summary and ratings history on Fusion-io click here. For more ratings news on Fusion-io click here.
Shares of Fusion-io closed at $30.34 yesterday.
Auriga analyst said, "We reiterate a SELL rating following a mixed earnings release that showed continued strong sales growth, but with a reduced EPS outlook moving forward. We continue to believe that current valuation suggests an unfavorable risk/reward. We view Fusion-io, the company, as a very exciting growth story, with a clear lead in the emerging PCIe SSD space, which we estimate will grow at a 97% CAGR through 2015, to a $3Bn TAM at that time. While upside potential to our near-term assumptions for both the industry and Fusion-io exist, substantial risks also exist, including increasing competition and high customer concentration."
"Solid revenue quarter driven by strategic accounts: Fusion-io reported a 169% y/y increase in revenue, to $84Mn versus our $78Mn estimate (Street at $76Mn). Strategic accounts (we believe Facebook was the driver) accounted for 57% of revenue, or roughly $48Mn, above our $40Mn estimate, while core accounts of $36Mn were once again below our $38Mn estimate. Fusion-io identified salesforce.com (NYSE: CRM)(NR) as another major customer that could develop into a key strategic customer like Apple (Nasdaq: AAPL)(Buy) and Facebook."
For an analyst ratings summary and ratings history on Fusion-io click here. For more ratings news on Fusion-io click here.
Shares of Fusion-io closed at $30.34 yesterday.
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