Quantum Corp. Downgraded to Market Perform with $13 Target after 27% Q4 Revenue Surge
QMCO•Quantum Corp. posted Q4 revenue of $78 million, a 27% year-over-year rise surpassing its $68 million guidance, driven by demand for AI-focused data storage solutions. Nehal Chokshi downgraded the stock to Market Perform with a $13.00 target after a GAAP net loss of $9.5 million and minimal upside.
1. Analyst Downgrade Details
On June 26, Nehal Chokshi lowered the rating on Quantum Corp. to Market Perform and set a $13.00 price target, citing the stock’s current price near the target and limited upside potential.
2. Q4 Financial Performance
Quantum Corp. delivered fourth-quarter revenue of $78 million, up 27% year-over-year and above its $68 million guidance, fueled by strong demand for AI-focused data storage solutions.
3. Profitability Metrics
The company reported a GAAP net loss of $9.5 million and a non-GAAP adjusted loss of $3.1 million, while achieving $1 million in adjusted EBITDA, a $9 million improvement from the prior year.
4. Stock Price and Upside
Shares traded around $12.93, down 3.65% on the downgrade, leaving only 0.54% of potential upside to the new price target and suggesting limited near-term gains.
