Quantum Corp Surges 13% On Positive Q2 Revenue
Quantum Corp (NYSE: QTM) shares surged 13 percent in Tuesday's premarket on the company’s positive preliminary Q2 numbers.
Lake Street Capital had upgraded its rating on the company to Buy at the end of June and analyst Eric Martinuzzi commented that his "faith was well-placed" and that "revenue of $135 million, while not a rocket ship of growth, was a positive comp for the first time in many quarters."
Martinuzzi noted that "Quantum is managing a business in secular decline – tape automation systems – at the same time it is investing for growth in disk systems and scale-out products. In FY15 we expect stabilization in disk systems and tape and growth in scale-out products."
Lake Street maintained a $1.50 price target and has used a 0.9x EV/CY 2015 Revenue multiple.
Martinuzzi concluded that for Quantum to be successful, "it must increase the percent of revenue that comes from its disk and scale-out product segments," which is currently 25 percent.
Quantum Corp traded recently at $1.11, up 8.8 percent.
Latest Ratings for QTM
|Aug 2015||Roth Capital||Initiates Coverage on||Buy|
|May 2015||Northland Securities||Upgrades||Market Perform||Outperform|
|Jun 2014||Lake Street||Upgrades||Hold||Buy|
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