Baird Ups Dot Hill Systems to Outperform

Analyst Daniel Renouard calls the sell-off following Friday's news of the CFO's resignation "overdone"

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.

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