Wunderlich Securities Initiates Coverage on Quantum Corporation

Wunderlich Securities is initiating coverage on Quantum Corp.

with a Buy rating and $4 price target. Wunderlich writes, "With solid traction in its disk-based product offerings, the company appears well positioned to drive growth fueled by new product adoption backed by strong free cash flows from the Tape segment. We believe the company has the capital structure, scale, and products to drive a significant inflection in the growth rate for its disk and software product segment, while maintaining solid FCF from the existing tape business." QTM has 30% compounded EPS growth over the past three years and revenue has declined by ~10% annually over that timeframe. Wunderlich views this focus on profitable revenue as evidence of "strong fiscal management." QTM closed Thursday at $3.57.