Fusion-IO (FIO) Shares Rally as Co. May Announce New OEM Deal with Cisco (CSCO)

Shares of Fusion-IO (NYSE: FIO) have rallied more than 11 percent Thursday morning as traders are responding to an earlier research note from Piper Jaffray's Andrew Nowinski.

The analyst's industry checks have suggested Fusion-IO might be stamping out an OEM deal related to Cisco's (Nasdaq: CSCO) Unified Computing System platform. Nowinski believes Cisco could become a 10 percent customer for Fusion-IO over the next three or four quarters. He estimates Fusion-IO would need to embed its cards in about 2.9 percent of all Cisco's server units in 2012 to hit the 10 percent benchmark.

Nowinski also estimated Fusion-IO's sales from Facebook could reach $201 million in 2012.

He sees declining NADA prices as a tailwind for Fusion-IO's gross margin.

The Piper Jaffray analyst maintains an Overweight rating and $38 price target on shares of Fusion-IO.

Also potentially impacting shares this morning, the company unveiled its ioMemory for its ioFX platform.

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