UPDATE: Wedbush Upgrades sTec 'As WDC Throws Shareholders A Life Preserver'

In a report published on Tuesday, Wedbush analyst Betsy Van Hees upgraded sTec STEC from Underperform to Neutral and raised the price target on the company from $3 to $6.85. In the report, Wedbush stated, "We are upgrading STEC to a NEUTRAL rating and increasing our price target to $6.85 following Western Digital Corporation's (WDC) surprise announcement that its wholly-owned subsidiary HGST has entered into a definitive agreement to acquire sTec for roughly $340MM in cash or about $6.85 per share." sTec closed on Monday at $6.71.