UPDATE: UBS Investment Research Downgrades Fusion-IO on Transitional and Competitive Issues

In a report published Tuesday, UBS Investment Research analyst Steven Milunovich downgraded the rating on Fusion-IO (NYSE: FIO) from Buy to Neutral, and lowered the price target from $15.00 to $11.00.

In the report, UBS Investment Research noted, “We are cutting our rating to Neutral with a lack of near-term catalysts. Following the management change, we had thought the stock price decline discounted Fusion's challenges, but that proved incorrect. We still see a chance the company is acquired, but we don't view PCIe cards as a strategic technology. Fundamentally, we worry the window for Fusion to succeed is closing: (1) PCIe card rivals are coming out of the woodwork while new approaches like memory channel storage could provide an alternative; and (2) the go-to-market changes will take another 6-9 months to pay off.”

Fusion-IO closed on Monday at $10.00.