Maxim Group analyst Matthew Galinko maintained a Buy rating on Data Storage (DTST – Research Report) yesterday and set a price target of $9.00.
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Matthew Galinko’s rating is based on the promising growth prospects of Data Storage’s cloud infrastructure and disaster recovery segment, which has shown a consistent increase in revenue. Despite a slight miss in the 1Q25 revenue estimates, the cloud segment’s recurring nature and its 14% growth offer a stable foundation for future expansion.
Additionally, the company’s financial position is solid, with $11.1 million in cash and investments, and a breakeven-to-positive free cash flow, which supports its growth initiatives. The stock is trading at a significant discount compared to its peers, providing an attractive valuation. These factors, combined with the potential for increased cloud revenue from IBM server migrations, underpin Galinko’s Buy rating and the $9 price target.
Galinko covers the Technology sector, focusing on stocks such as Adeia, Unisys, and Data Storage. According to TipRanks, Galinko has an average return of -3.8% and a 38.84% success rate on recommended stocks.