Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of solid-state specialist Fusion-io (NYS: FIO) have popped today by upwards of 11% after some bullish analyst comments.
So what: Credit Suisse reinstated coverage on the stock with an outperform rating and a lofty $50 price target. Analyst Kulbinder Garcha believes the rest of the Street is lowballing Fusion-io's revenue potential next year. Garcha's $527 million estimate for 2013 tops the $453 million consensus by a healthy margin.
Now what: Garcha continues that there may be five to 10 strategic customer accounts in the pipeline, including a couple that could be as large as its relationship with Facebook. Fusion-io's two target customers, Facebook and Apple, are expected to grow at least by 20%. Garcha also thinks that more focus on software will help boost margins. Looks like I'm not the only one who thinks Fusion-io is a buy.
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At the time thisarticle was published Fool contributor Evan Niu owns shares of Apple, but he holds no other position in any company mentioned. Click here to see his holdings and a short bio. The Motley Fool owns shares of Apple. Motley Fool newsletter services have recommended buying shares of and creating a bull call spread position in Apple. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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