Thursday, January 13, 2011

LSI (NYSE:LSI) Faces Tough First Half: Lacks Catalysts, Seasonal Storage Weakness

LSI (NYSE:LSI) faces a tough first half, according to Deutsche Bank (NYSE:DB), based on no short-term catalysts and seasonal weakness in storage systems.

Deutsche says, "LSI continues to be well positioned to benefit from a steady but lumpy enterprise IT growth environment and we remain positive in the co’s overall Storage strategy. However, moving forward into 1H11, we believe seasonal weakness in Storage Systems and lack of near-term catalysts will result in the stock trading in-line with the broader semi group."

Deutsche Bank downgraded LSI Corporation (LSI) from "Buy" to "Hold," which closed Wednesday at $6.11, up $0.01, or 0.16 percent. Deutsche raised their price target on LSI from $6 to $6.50.

No comments: