Datalink (DTLK) PT Cut to $8.50 at Needham & Company Amid Weak Q2; Maintains 'Buy'

Needham & Company analyst Richard Kugele lowered his price target on Datalink Corporation (NASDAQ: DTLK) to $8.50 (from $13.00) following weak Q2 results but maintained a Buy rating saying the stock already reflects the headwinds.

Kugele commented, "In retrospect the headwinds experienced by some of the large traditional storage players (that comprise the majority of DTLK sales) were not properly reflected in guidance or our estimates. As the company sees increasing sales from its networking and Next-Gen storage players, margins are likely to be negatively impacted. Partially offsetting this dynamic is improving traction within Advanced Services and the recently announced restructuring. We believe we have now conservatively modeled the company’s prospects over the next 18 months, and still see value to the $8.50 range based on 10x C16 EPS."

For an analyst ratings summary and ratings history on Datalink Corporation click here. For more ratings news on Datalink Corporation click here.

Shares of Datalink Corporation closed at $6.85 yesterday.

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