UPDATE: Loewen, Ondaatje, McCutcheon Initiates Qualstar Corporation at Buy on Deep Value
Loewen, Ondaatje, McCutcheon initiated coverage on Qualstar Corporation (NASDAQ: QBAK) with a Buy rating and a $3.25 price target.
Loewen, Ondaatje, McCutcheon commented, "Qualstar remains a deep value stock, trading at roughly equal to net cash on its balance sheet. However, we believe new CEO Larry Firestone has successfully undertaken a lot of the heavy lifting on a turnaround to transform Qualstar into a growth company again. … Our one‐year price target is $3.25 per share (~7x FY2015E EV/EBITDA). This target multiple is in line with the current median forward‐year EV/EBITDA multiple for a select peer group. We are initiating coverage with a Buy rating."
Loewen, Ondaatje, McCutcheon closed at $1.60 on Friday.
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