UPDATE: Lake Street Capital Initiates Quantum Corporation at Hold; Disk Growth Offsets Tape Slowdown
Lake Street Capital initiated Quantum Corporation (NYSE: QTM) with a Hold rating and a $1.25 price target.
Lake Street Capital commented, "Over the course of the next several years, we expect Quantum disk sales to outpace tape sales. We view Quantum shares as a tale of two companies. One company is the fast-growing, but not yet profitable, disk system and software (DSS) business, a technology leader in the market for deduplication and backup appliances. The other company is the tape automation systems business, a segment experiencing mid-teens product revenue contraction, but still generating cash."
Quantum Corporation closed at $1.25 on Tuesday.
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