UPDATE: Lake Street Initiates Imation with Buy Focusing on Storage and Security, Hidden Assets

Lake Street analyst Eric Martinuzzi initiated Imation Corporation (NYSE: IMN) exposure with a Buy rating and PT of $8.00.Martinuzzi noted that this PT is not based on the valuation of the media businesses or the $50 million in hidden investments, rather on the Storage and Security Solutions segment. The analyst emphasized that “management needs to invest in its Storage and Security business by hiring the right sales and engineering talent and spending efficiently on international distribution. It also needs to cut costs in its declining optical and tape businesses to protect margins.”Despite the decline in consumer and commercial storage, Martinuzzi stated that IMN is underappreciated with its hidden assets and expected growth. Lake Street described Imation as “a compelling investment opportunity for the value investor.”IMN closed at $4.18 on Thursday.