UPDATE: Lake Street Capital Initiates Quantum Corporation at Hold; Disk Growth Offsets Tape Slowdown

Lake Street Capital initiated Quantum Corporation

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. Our HOLD rating reflects our belief the risks of the one company are offset by the rewards of the other." Quantum Corporation closed at $1.25 on Tuesday.