Dot Hill (HILL) PT Bumped at Needham & Company Amid Lenovo Storage Opportunity

Needham & Company analyst Richard Kugele reiterated a Buy rating and bumped his price target on Dot Hill (NASDAQ: HILL) to $8.00 (from $7.50) saying "we believe that Lenovo storage system announcement on May 28th signals an expansion of its existing storage OEM agreement with Dot Hill from the previous China-only position to that of worldwide supplier."

Kugele added, "While the ultimate revenue impact remains unclear, we believe that this deal bolsters the company’s previous guidance for 2015 and the view that they could achieve flat yoy revenues in their OEM business despite IT spending headwinds and disruption at HP. With our increased confidence in the estimates, we reiterate our Buy and raise our target to $8.00 from $7.50 based on 22x NTM EPS of $0.33 plus net cash of $0.71."

For an analyst ratings summary and ratings history on Dot Hill click here. For more ratings news on Dot Hill click here.

Shares of Dot Hill closed at $7.10 yesterday.

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