FBN Securities Reiterates Sector Perform Rating, $1.50 PT on Quantum
In a report published Friday, FBN Securities reiterated its Sector Perform rating and $1.50 price target on Quantum Corp. (NYSE: QTM).
FBN Securities noted, “We maintain our Sector Perform rating and $1.50PT on QTM. The company is growing its (more valuable) disk segment well (up 18% Y/Y, up 38% Q/Q), but its tape business was weak due to weakness in federal and due to a pause in front of the LTO-6 transition (expected to occur at the end of the current quarter). QTM believes that it ‘has a shot' at increasing its disk revenue from $42M in FQ2/Sept. to $50M+ in FQ3/Dec. If so, this would represent 38% Y/Y growth in disk and would have strong positive implications for QTM's valuation. The company did announce its intention to sell $60M of convertible notes (with a $10M over-allotment option), and intends to use much of the proceeds to pay off a $50M revolver.”
Quantum Corp. closed on Thursday at $1.22.
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