Benchmark Comments on STEC During Product Transitions

Benchmark has published a report on STEC (NASDAQ: STEC).

In the report, Benchmark wrote, "Management is moving forward with plans to double its manufacturing capacity at the company's Malaysian facility in anticipation of a large increase in volume shipments of SSDs in 2012. We note that these product transitions should take three quarters, best case, and there is always execution risk involved. With this in mind, we are stepping to the sidelines and taking our investment rating down from Buy to Hold."

Benchmark downgraded STEC from Buy to HOLD with no price target given. STEC closed Thursday at $16.70.