Stec Shares Plummet Following Price Cut
NEW YORK (
) -- Thursday wasn't pretty for memory chipmaker
Stec
(STEC)
, which tumbled nearly 17% by the closing bell.
Earlier, an analyst for Wedbush Morgan cut Stec's price target to $39 from $45 citing increasing competition in the enterprise solid-state drive market "intensifying above our previous expectations," though she kept her Outperform rating intact.
According to
Dow Jones
, the analyst wrote that downward pressure could continue on the stock even though Stec may beat bottom-line third quarter estimates and though a jump in its fourth-quarter estimates may be on the horizon.
Still, Stec shares were moving higher in pre-market trading on Friday, clawing back a bit of the drop-off by adding 84 cents to $32.37. Over the past month, shares are down 4.6%, though the stock has grown a whopping 640% since the year began.
Elsewhere before the opening bell on Friday,
SanDisk
(SNDK)
shares were gaining 4.1%, while
Micron Technology
(MU) - Get Report
was adding 1-cent at $8.23.
-- Written by Sung Moss in New York
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