Market Overview

Quantum Corp Surges 13% On Positive Q2 Revenue

Share:

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

DateFirmActionFromTo
May 2018DowngradesBuyHold
Aug 2015Initiates Coverage onBuy
May 2015UpgradesMarket PerformOutperform

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!

Latest Ratings

StockFirmActionPT
BGNECLSADowngrades
SWKSMizuhoMaintains90.0
KEMB. Riley FBRDowngrades27.2
ROKGabelli & Co.Downgrades
SSRMB. Riley FBRUpgrades23.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com

Morgan Stanley Is Near Bull Case On Mercadolibre Ahead Of Investor Day

UPDATE: Citigroup Shares Gain On Upbeat Q3 Profit