UPDATE: FBN Securities Downgrades Quantum Corp from Outperform to Sector Perform

FBN Securities downgrades Quantum Corp. QTM from an Outperform to a Sector Perform rating and lowers its price target from $3.00 to $2.30. FBN Securities comments, “We are downgrading shares of QTM from Outperform to Sector Perform and lower our PT from $3.00 to $2.30 following QTM's negative preannouncement last night. Europe and larger deals were blamed for the miss, but we also think stronger competition from EMC is also a factor. We now see QTM's fundamental value as close to $1 and its take-out value at close to $3, so our $2.30 PT embeds a higher than 50/50 chance that QTM is acquired (possibly by NTAP) over the next few years. QTM will be reporting final FQ1 results on July 31.” Quantum Corp closed at $2.10 on Monday.