Needham & Company Assumes Dot Hill (HILL) at Buy

Needham & Company assumes coverage on Dot Hill (NASDAQ: HILL) with a Buy rating and a price target of $5.00.

Analyst Richard Kugele comments, "We believe that HILL's current valuation incorporates the headwinds to topline growth/order visibility seen earlier in 2014 and the resulting negative revisions to Street estimates. Nevertheless, we still see upside catalysts in the form of 1) multiple new solutions ramping in 3Q/4Q; 2) a potential new server/storage cycle post the launch of Grantley; and 3) revenue diversification from continued vertical market penetration. Bottom line, we argue that if HILL can execute on some/all of these opportunities the stock can reach or surpass our price target, and given ongoing consolidation in the sector, the likelihood of being acquired by a strategic player increases significantly. Consequently, we are assuming coverage with a Buy rating."

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 $3.61 yesterday.

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