UPDATE: Wunderlich Securities Initiates Coverage on Dot Hill Systems Corp. with Buy Rating, $7 PT on Significant Upside

In a report published Friday, Wunderlich Securities analyst Kaushik Roy initiated coverage on Dot Hill Systems Corp. HILL with a Buy rating and $7.00 price target. In the report, Wunderlich Securities noted, “We are initiating coverage of Dot Hill Systems Corp. (HILL) with a Buy rating and $7.00 price target. Dot Hill is participating in the large and growing market for data storage systems. The company has solid technologies that are trusted by marquee customers such as HP (HPQ-NR), Teradata (TDC-NR), Tektronix, Lenovo, Acer, and others. Dot Hill is signing up new OEM customers and is growing faster than the market growth rate. The stock has almost tripled from last year primarily because the company gained design wins at new OEM customers and margins expanded. We believe that there is leverage in the operating model and margins could continue to expand. We believe there is significant upside to the stock as EPS growth accelerates going forward.” Dot HIll Systems Corp. closed on Friday at $3.98.