Market Overview

Quantum Corp Surges 13% On Positive Q2 Revenue

Related QTM
38 Stocks Moving In Friday's Mid-Day Session
Mid-Morning Market Update: Markets Open Higher; NVIDIA Earnings Beat Estimates

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 2015Roth CapitalInitiates Coverage onBuy
May 2015Northland SecuritiesUpgradesMarket PerformOutperform
Jun 2014Lake StreetUpgradesHoldBuy

View More Analyst Ratings for QTM
View the Latest Analyst Ratings

Posted-In: Eric Martinuzzi Lake Street CapitalAnalyst Color News Analyst Ratings Movers


Related Articles (QTM)

View Comments and Join the Discussion!