From the Better to be Lucky than Smart Department: STEC
As reported this morning by Briefing.com: STEC Inc initiated with a Buy at Broadpoint AmTech Research; tgt $23 . Broadpoint AmTech Research initiates STEC with a Buy and price target of $23 saying saying they believe STEC's first mover advantage will be sustainable for a period longer than market expectations. Competition is inevitable from HDD vendors, NAND suppliers and other entrants, and while competition is emerging, they do not expect any material impact in 2010 given qualification cycles of ~9 months, and see no real competition to STEC's flagship ZeusIOPS product. Firm notes STEC has declined by 67% from the September peak of $42.50 due to competitive concerns and near-term cloudiness in the EMC business. They view this pull-back as an excellent opportunity for investors to build positions. Catalysts include ramps at other tier one OEMs, EMC inventory issues getting resolved, and continued expansion of the enterprise SSD market.
Our cost basis is $12.37.
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