Quite a nice day for shares of STEC Inc. (NASDAQ:STEC), which makes DRAM memory systems, including solid-state drives. The company yesterday held a meeting with analysts in San Francisco, who apparently like what they heard.
Needham’s Richard Kugele today reiterated his Buy rating on the stock, and raised his price target on the shares to $18 from $13. He also raised estimates: For 2008, he sees EPS of 33 cents, up from 29 cents; for 2009, he now sees 84 cents, up from 55 cents.
Kugele says the company has a “significant lead” over its rivals in the enterprise-class SSD segment, which “should manifest itself in rapid revenue and earnings growth over the next 12-18 months.”
STEC today was up $1.11, or 9.37%, to $12.95 at market close.