Velo, do you disagree with all of these ANALYST calls today? -->
priceline.com (PCLN) 4.85: Goldman Sachs upgrades to MARKET OUTPERFORM from MARKET PERFORM; based on
improved outlook as management has right sized the business, improved customer service, and stabilized growth; while company still in a
turnaround phase, progress has been made that positions PCLN to better control its destiny, with Q1 potentially being its last unprofitable
qtr; firm projects loss of $0.04 for 2001 and a profit of $0.10 in 2002.
Dell Computer (DELL) 26.24: Merrill Lynch reiterates near-term BUY and long-term BUY ratings based on company's advantaged
competitive position and thrust into the enterprise; reduces FY02 est. to $0.68 from $0.82 and FY03 to $0.90 from $1.01; says next
couple of quarters could prove challenging, despite the positive impact from favorable component costs and mix shift; believes it is key that
investors expand their time horizon into next year as they think about Dell.
McDATA (MCDT) 27.91: FAC/Eqts First Albany upgrades to STRONG BUY from NEUTRAL; cites market share gains at EMC; in
March qtr, McData sold approximately $2 mln of 16-port switches to EMC, and while a small amount, it was $2 mln that BRCD did not
sell, and indicates that EMC is comfortable selling 16-port switches from multiple vendors.
ChipPAC (CHPC) 6.30: Thomas Weisel upgrades to STRONG BUY from BUY; cites improved cost structure and reduced customer
inventories; FY01 raised from ($0.27) to ($0.15), FY02 from $0.17 to $0.32.
EMC Corp (EMC) 40.15 +0.55: -- Update -- ABN AMRO upgrades to BUY from ADD and ups price target to $55 from $45; raises
2002 EPS estimate from $1.04 to $1.08, and revenues from $13.8 bln to $14 bln; says becoming increasingly confident that the storage
spending slowdown is reaching a bottom; does not expect a full recovery in spending before the end of the year, but believes the worst
news is already factored into EMC's valuation.
PeopleSoft (PSFT) 37.50 +0.46: Pacific Crest initiates coverage with a BUY and price target of $45; firm cites dominant position in
human resource management systems, new product cycle, strong balance sheet, and improving margins.
IDEC Pharm (IDPH) 46.77 -2.43: Lazard Freres initiates coverage with an OUTPERFORM rating and price target of $70; says IDEC
is a top-tier biotechnology company with a very successful product in Rituxan, its monoclonal antibody for the treatment of non-Hodgkin's
lymphoma; believes that IDEC is evolving into a fully integrated biopharmaceutical company with strong growth prospects and is, therefore,
deserving of a premium multiple.
QLogic (QLGC) 43.35 +0.46: Dain Rauscher Wessels initiates coverage with a BUY AGGRESSIVE rating and price target of $50;
firm says that, while sector trends remain weak, investors should use pullbacks to accumulate positions in segment-leading companies like
QLogic; company's switch technology acquisition positions the company well in its relationship with Sun Microsystems, as well as for the
future direction in I/O networking; new switch programs are likely to yield stronger relative performance in the yet-to-be-reported March
quarter.
Brocade Comms (BRCD) 39.60 +1.60: -- Update -- ABN AMRO initiates coverage with a BUY rating and price target of $50;
believes Brocade has a sustainable competitive advantage based on its Fabric OS and latest ASIC technology; expects company to report
EPS of $0.31 and $0.58 for fiscal 2001 and 2002, respectively, but says these estimates could prove conservative if storage spending
rebounds in 2002.
American Tower (AMT) 26.50 -0.30: CIBC Wrld Mkts initiates coverage with a BUY rating and price target of $42; says AMT is one
of the best capitalized and least levered, with cash of $1.1 bln, a debt to capital ratio of 51%, and cash interest coverage of 1.2x; believes
company can generate five-year revenue and EBITDA compound annual growth rates of 21% and 36%, respectively.
McDATA (MCDT) 29.81 +1.90: -- Update -- ABN AMRO initiates coverage with a BUY; believes this leading vendor in the NAS
market is successfully leveraging its mainframe storage heritage to penetrate the fast-growing networked storage market; McDATA is
currently trading at 48x firm's 2002 EPS estimate, in line with the peer group average, and firm believes this is an attractive valuation for a
company with McDATA's future opportunities and competitive advantage.
SBA Comms (SBAC) 32.27 -1.82: CIBC Wrld Mkts initiates coverage with a BUY rating and price target of $43; with fully funded
business plan through '02, SBAC currently has $325 mln in cash (plus $300 mln in bank financing), debt to capital of 54%, and cash
interest coverage of 1.3x; says SBAC is a pure play in U.S. whose 2,389 tower portfolio is relatively young with 64% newly built.
Finisar Corp (FNSR) 16.09 +1.14: FAC/Eqts First Albany upgrades to STRONG BUY from BUY; raises fiscal year (April 02) revenue
estimate from $278 to $292 mln, and EPS from $0.08 to $0.10; says valuation indicates continued appreciation potential.
Procter & Gamble (PG) 63.94 +3.89: -- Update -- Salomon Smth Brny upgrades to OUTPERFORM from NEUTRAL with $70 price
target as firm finally believes that the worst may indeed be behind PG; notes PG is not out of the woods; however, with easier comparisons
for both sales and operating income growth ahead, early signs that PG is getting more focused, and a relatively attractive valuation, firm
thinks near-term upside potential to current levels exists.
Applied Materials (AMAT) 52.30 -2.30: WF Van Kasper upgrades to BUY from MARKET PERFORM; firm anticipates
company's results to essentially match guidance, which was reiterated in late March, and firm's estimates of $1.95 billion in revenues and
$0.34 in EPS when it reports on 5/15.
Human Genome (HGSI) 63.12 -1.10: In their Noon Research report, Prudential reiterates STRONG BUY on the heels of strong Q1
earnings report; believes HGS continues to establish itself as the bellweather of genomics derived product developers.
Microsoft (MSFT) 69.54 +1.79: This afternoon, UBS Warburg adds software giant to Focus List; sees MSFT benefiting from its
perception as industry leader in current weak macroeconomic environment; in lean spending environment, believes enterprise clients more
likely to invest in tier-one software providers; notes that MSFT is aiming to leverage its expansive installed base with a "flurry" of
partnership agreements. |
