Fusion-io (FIO) Guidance "Comically" Conservative, Buy on Weakness - Benchmark
Tweet
Share
E-mail
Get Alerts FIO Hot Sheet
Price: $11.24 --0%
Rating Summary:
6 Buy, 17 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 13
Rating Summary:
6 Buy, 17 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 13
Join SI Premium – FREE
Shares of Fusion-io (NYSE: FIO) are down 7 percent early Thursday following first quarter results and guidance after the close, but according to one analyst results were "very strong" and guidance was "comically" conservative.
Benchmark reiterated their Buy rating and price target of $35, noting that while the stock may trade down based on management's implied guidance for the remainder of FY13 they would use any weakness in shares as a buying opportunity.
"Most likely in an attempt to keep a conservative outlook, management left FY13 guidance unchanged. However, considering the tremendous upside to 1Q13 revenue and GM, investors are left to believe op ex will ramp at nearly twice the rate of revenue over the next three quarters, and thus, OMs are expected to decline from the 19% reported in 1Q13 down to ~10% in 2H FY13," analyst Gary Mobley states. "At the end of the day, the company's business pipeline is at record levels and we believe management is simply being ultra coy with guidance."
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 $27.30 yesterday.
Benchmark reiterated their Buy rating and price target of $35, noting that while the stock may trade down based on management's implied guidance for the remainder of FY13 they would use any weakness in shares as a buying opportunity.
"Most likely in an attempt to keep a conservative outlook, management left FY13 guidance unchanged. However, considering the tremendous upside to 1Q13 revenue and GM, investors are left to believe op ex will ramp at nearly twice the rate of revenue over the next three quarters, and thus, OMs are expected to decline from the 19% reported in 1Q13 down to ~10% in 2H FY13," analyst Gary Mobley states. "At the end of the day, the company's business pipeline is at record levels and we believe management is simply being ultra coy with guidance."
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 $27.30 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Amazon.com (AMZN) PT Raised to $215 at UBS
- Acrivon Therapeutics Inc (ACRV) PT Lowered to $22 at Jones Trading
- Capitol Federal Financial (CFFN) PT Lowered to $6 at Keefe, Bruyette & Woods
Create E-mail Alert Related Categories
Analyst Comments, Analyst EPS ViewSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
