CSCO, RFMD, SONE, ORCL, MCDT and SONS news
08:33 ET Cisco Systems (CSCO) 17.80: Morgan Stanley channel checks and recent CIO survey indicate stabilization in the N. American enterprise networking market. Firm estimates that NA enterprises represents approx. 33% of company's revenue. Morgan says while improvement is a positive, firm would be unable to justify valuation at higher prices.
08:32 ET DiamondCluster (DTPI) 17.25: CIBC World markets downgrades to HOLD from Strong Buy due to continuing weak demand for consulting services.
08:28 ET Petroleum Refiners Cut : UBS Warburg downgrades independent refining companies after last night's release of the API's data on U.S. crude oil and product inventories, which showed alarmingly high week-to-week builds in crude oil, gasoline, and distillate stocks. Stocks downgraded: VLO, UDS, SUN, MRO. See Upgrades/Downgrades for details.
08:25 ET RF Micro Device (RFMD) 29.93: Merrill Lynch initiates coverage with a NT Accumulate/LT Buy rating and 12-18 month target of $33; cites eventual recovery of the wireless market and the company's established leadership supplying power amplifiers to Nokia (NOK).
08:14 ET Sonus Networks (SONS) 27.55: Company and Juniper Networks (JNPR) announce that they are working together to deliver carrier-class solutions harnessing the latest innovations in MPLS/Traffic Engineering, service-aware routing and differentiated services. Companies actively engaged in building converged core network infrastructure for carriers worldwide, including service provider Zephion Networks.
08:13 ET S1 Corp (SONE) 7.08: WR Hambrecht upgrades to STRONG BUY from Buy citing solid Q1 results; believe S1 will achieve its Q4:01 EBITDA breakeven target as revenues continue to increase each quarter and further operating expenditures are taken out of the model.
08:05 ET Oracle Corp (ORCL) 16.04: Merrill Lynch believes that company undertook an approximate 7% reduction in workforce yesterday, somewhat deeper than the 5% firm had postulated in its comments two weeks ago. Feels that timing of reductions suggests that revenue weakness continues at Oracle and the company is managing near-term earnings performance. Merrill thinks that its Q4 (May qtr) estimates could prove aggressive.
08:00 ET McDATA (MCDT) 31.75: ABN AMRO initiates coverage with a BUY rating. Says stock currently trading at 48x projected 2002 earnings of $0.58, which is in line with the peer group average. Views this as an attractive valuation for a company with MCDT's future opportunities and competitive advantage.
07:50 ET Opening Indications : Nasdaq futures spike up to +6 (13 pts above fair value) after CNBC reports rumor that Cisco could be seeing some improvement in its inventory situation. Contract has now eased back to -2, or 5 pts above fair value...S&Ps trading 1.5 below fair value.
07:36 ET i2 Technologies (ITWO) 17.77: Company promotes Greg Brady to the CEO post, replacing Sanjiv Sidhu, who will continue as chairman of the board. Mr. Brady previously served as President of the company. |
