Lazard thinks that although sentiment in negative on Fusion-io (NYSE: FIO) heading into quarterly results, there might be some surprises in store for the company.
Checks by the firm hint that revenue is deferred, rather than lost. Lazard thinks sales for strategic accounts will resume in the second-half of 2013, commenting, "Even as competitors inevitably narrow the density/performance gap, we believe the aggregate opportunity remains substantial and should comfortably support multiple vendors."
Lazard commented that it sees "no evidence that alternative products are the proximate cause of lumpiness at Fusion-io's key strategic accounts." The firm doesn't see any material change to the story, with the last reset setting up for upside bias to numbers.
Though longer-term issues remain, Lazard believes the Fusion-io isn't hitting that impasse quite yet.
Lazard has a Buy rating on Fusion-io with price target of $23. Looking to Q3, the firm models revs of $81 million and a loss of $0.07 per share.