Baird upgraded Dot Hill Systems (HILL
) to outperform from neutral, after the company on Friday announced that the Chief Financial Officer will resign.
Analyst Daniel Renouard says shares fell nearly 10% Friday following the departure of the CFO, a month after former CEO retired. He believes the departure of both the CEO and CFO are more benign than they appear, and the recent sell-off is overdone. He says that with improving prospects at Sun Microsystems (SUNW
) (86% customer, new Original Equipment Manufacturing opportunities, and healthy balance sheet including $2.77 per share net cash,) he recommends speculative investors purchase shares at current levels. He keeps his $8 stock price target.